Oil prices rebound with decline in gasoline inventories
Commodity Alert: Oil prices rebound with decline in gasoline inventories
Oil prices rebounded slightly in morning, pulled up by a report from the Energy Information Administration (EIA) that gasoline inventories had dipped. Oil prices had dropped following a decline of more than 1 percent in S&P 500 Futures, triggered by the resignation of key free-trade advocate Gary Cohn, economic adviser to U.S. President Donald Trump, on Tuesday. The EIA report came out a day after the 1-percent drop in S&P futures. The authority reported that gasoline stockpiles had declined by 800,000 barrels in the reporting period, compared with a 2.5-million-barrel build in the previous week. Since the start of the year, there has been only one week featuring a drop-in gasoline inventories, while the total build since then stood at 17.8 million barrels. However, oil markets remain volatile due to excess supply. The American Petroleum Institute estimated inventories had risen by 5.66 million barrels last week, further weakening oil prices after the blow from Cohn’s resignation led to growing concerns that a trade war is on the horizon.