Ahead Of The Bell: Drop In Crude Reserves Expected

NEW YORK (AP) — The Energy Department will likely report a 2 million-barrel drop in crude oil reserves on Wednesday for the week ended May 29, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

The Energy Information Administration releases its weekly report at 10:30 a.m. EDT.

Platts also expects gasoline stockpiles to fall by 1.5 million barrels, distillate stocks to rise by 950,000 barrels and refinery capacity to rise 0.6 percentage point to 85.7 percent.

A reading above or below estimates can influence market trading.

Last Thursday, the EIA said for the week ended May 22 crude oil inventories fell by 5.4 million barrels to 363.1 million barrels; gasoline reserves fell by 600,000 barrels to 203.4 million barrels; and distillate inventories rose by 300,000 barrels to 148.4 million barrels.

Last week's crude oil supply drop widely missed the 1.8 million-barrel boost analysts expected.

After the report, benchmark crude for July delivery rose $1.63 to settle at $65.08 a barrel on the New York Mercantile Exchange, a six-month high.