Crude Inventories Declined By 4.6 Million Barrels

On August 21, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 4.6 million barrels from the previous week, compared to analyst consensus of -2.72 million barrels. At current levels, crude inventories are about 5% below the five-year average for this time of the year.

Total motor gasoline inventories decreased by 1.6 million barrels, compared to analyst consensus of -1 million barrels. Distillate fuel inventories declined by 3.3 million barrels from the previous week.

Crude oil imports increased by 366,000 bpd, averaging 6.7 million bpd. Over the past four weeks, crude oil imports averaged 6.5 million bpd.

Strategic Petroleum Reserve increased from 376.5 million barrels to 377.2 million barrels as U.S. continued to buy oil for reserves. Domestic oil production moved back from 13.3 million bpd to 13.4 million bpd.

WTI oil gained ground as traders reacted to the EIA report. Falling crude inventories provided additional support to oil markets. Currently, WTI oil is trying to settle above the $74.00 level. It should be noted that oil markets have been under pressure in recent trading sessions as traders focused on Gaza ceasefire talks and China’s economic problems, and it remains to be seen whether EIA report will provide sustainable support to oil prices.

Brent oil made an attempt to settle back above the $78.00 level after the release of the EIA data.

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