U.S. oil stockpiles fell last week as Cushing, Okla., inventories fell sharply, pointing to an increase in refinery activity.
U.S. crude inventories fell by 5.27 million barrels last week, according to an estimate released Tuesday by the American Petroleum Institute, after a build of 2.56 million barrels the previous week. Cushing inventory slipped by 3.48 million barrels rose Gasoline inventories rose by 3.06 million barrels and distillate stocks increased by 1.4 million barrels.
Crude Oil WTI Futures, the U.S. benchmark for oil, fell 4 cent cents after settling down 11 cents at $55.77 per barrel.
The official government report due Wednesday is expected to show weekly U.S. crude supplies increased by about 430,000 barrels last week.