Oil trades at 5-week high as API reports draws in oil, gasoline & distillates

Oil prices on both sides of the Atlantic trade close to 5-week high after the American Petroleum Institute (API) reported a drop in oil, gasoline and distillate inventories. 

The API said the US oil inventories fell 1.5 million barrels in the week ended May 19, compared to the expectation of 2.3 million draw. The actual figure is less than estimates, however, what boosted oil prices was the accompanying drop in the gasoline, distillates, and oil at the Cushing, Oklahoma facility. Gasoline inventories fell by a sizable 3.15 million barrels.

Oil also remains bid on expectations that OPEC would extend the output cut agreement by 9 months. Report hit the wires yesterday that the Cartel is also considering an extension of 12 months. 

At the time of writing, WTI was up 17 cents or 0.33% at $51.64/barrel. Brent was up 19 cents or 0.35% at $54.34/barrel.