Crude Inventories Decline By 1.4 Million Barrels; WTI Oil Pulls Back From Session Highs

On December 11, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 1.4 million barrels from the previous week, compared to analyst consensus of -1.1 million barrels. At current levels, crude inventories are about 6% below the five-year average for this time of the year.

Total motor gasoline inventories increased by 5.1 million barrels, compared to analyst consensus of +1.9 million barrels. Distillate fuel inventories increased by 3.2 million barrels from the previous week.

Crude oil imports declined by 1.3 million bpd, averaging 6.0 million bpd. Over the past four weeks, crude oil imports averaged 6.8 million bpd.

Strategic Petroleum Reserve increased from 391.8 million barrels to 392.5 million barrels as U.S. continued to buy oil for strategic reserves.

Domestic oil production increased from 13.5 million bpd to 13.6 million bpd. Production is rising despite lower oil prices, which is bearish for oil markets.

WTI oil settled near the $69.30 level as traders reacted to the EIA report. The report is bearish due to rising gasoline inventories and rising domestic oil production. However, traders may focus on geopolitical tensions, which could provide material support to the market.

Brent oil has started to move away from session highs after the release of the report. Currently, Brent oil is trying to settle below the $72.70 level.

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