Investing.com -- U.S. crude stockpiles fell more than expected last week, the API reported Tuesday, adding optimism to tighter supply bets just as expectations for improved demand gather pace.
Crude Oil WTI Futures, the U.S. benchmark, traded at $85.44 a barrel following the report after settling up 1.7% at $85.15 a barrel.
U.S. crude inventories fell by about 2.3 million barrels for the week ended Mar. 29, compared with an increase of 9.3M (NYSE:MMM) barrels reported by the API for the previous week. Economists were expecting a decrease of about 2M barrels.
The API data also showed that gasoline inventories fell by about 1.5M barrels, and distillate stockpiles slipped by 2.6M barrels.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies decreased by about 2M barrels last week.