The inventory report from the Energy Information Administration showed a greater than expected decline in distillates as well as gasoline. Supplies of gasoline fell 3.5 million barrels and distillates dropped 2.9 million. Crude oil inventories rose 200,000 barrels but this was a much smaller than the 2.3 million barrel increase that was expected. Last week, inventories of crude oil were way up with a weekly increase of over 6 million barrels. These numbers should be viewed on more of a bi-weekly basis rather than week to week. Any delay in the shipping of oil even if it is due to weather conditions can alter the flow of inventory numbers.
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