Adjustment factor cited for drop in US crude inventory

New York

THE large weekly draw in US crude inventory data that sent oil prices surging and left traders scratching their heads can be mostly attributed to timing, as well as a large swing in the "adjustment" factor, analysts said on Wednesday.

Earlier, the US Energy Information Administration (EIA) shocked the market when it said that US crude inventories fell 6.2 million barrels to 504.6 million barrels, even as imports rose and refinery runs edged down.

Forecasters polled by Reuters had expected the EIA to report an increase of 3.4 million barrels. It was the third straight week that expectations were confounded, starting with a massive 14.5 million barrel draw two weeks earlier on disruptions related to a Gulf of Mexico storm. Oil pric…