Crude oil futures were seen erasing some previous gains to turn higher last week. The turnaround came on Thursday after the weekly crude oil inventory report showed a larger than expected draw on stockpiles.

Data from the Energy Information Administration (EIA) showed that crude oil stockpiles fell by 1.6 million barrels. This was against the estimates that showed a 1.9 million barrel of crude oil build up. For April, Crude oil prices rise briefly over 1.50% on the day after the bullish report. The data also showed a minor build up in gasoline inventories and covered the week ending February 16.

Crude Oil Inventories for week ending Feb 16, 2018: – 1.6 million (Source: Investing.com)

The drawdown on the crude oil stockpiles was the first in nearly four weeks. EIA said that at 420.5 million barrels, crude oil inventories are lower than the seasonal average. The report managed to encourage oil bulls to bid up the prices.

Gasoline production according to the EIA was higher during the week at 10.1 million barrels per day, compared to 9.6 million barrels per day from the previous week.

The bullish report caused crude oil prices rise which was earlier capped by a stronger U.S. dollar. Oil prices slipped on Wednesday last week after the FOMC meeting minutes showed a hawkish tinge, sending the USD higher on the day.

Earlier in the week, data from the American Petroleum Institute showed that a drawdown in crude oil stockpiles by 907,000 barrels. While the numbers against the estimates that showed a 1.9 million barrel of crude oil build up.

U.S. exports first shipment of Crude oil to Asia

Last week, the U.S. crude oil market hit a major milestone as the first supertanker left the U.S. shores exporting crude oil to Asia. Tom Shaw, president of the Louisiana Offshore Oil Port said that there wasn’t a better time to offer the crude oil export as domestic production was set to surpass 10 million barrels a day.