WTI futures spike higher following DoE inventory data

US crude oil inventories fell sharply last week despite rising imports as product stockpiles continued to build.

Commercial crude oil inventories in the States fell by 3.6m barrels over the week ending on 21 April to 528.7m, according to the Energy Information Administration, the Department of Energy's statistical arm.

In parallel, imports averaged 8.9m barrels a day, 1.1m b/d more than over the prior week, while those of gasoline averaged 916,000 b/d and those of distillates hit 54,000 b/d.

Gasoline inventories rose by 3.4m barrels last week and those of distillates by 2.7m b/d.

Refineries operated at 94.1% of capacity, EIA said.

In parallel, in its Drilling Productivity Report for April the DoE said that shale oil production in the Permian Basin - from which the majority of tight oil is extracted - is expected to increase to an estimated 2.4m b/d.

By way of an immediate reaction to Wednesday's figures, as of 1530 GMT front month WTI futures are spiking 0.46% higher to $49.80 per barrel.