Crude Inventories Decline By 1.6 Million Barrels

On September 18, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 1.6 million barrels, compared to analyst consensus of -0.1 million barrels. At current levels, crude inventories are about 4% below the five-year average for this time of the year.

Total motor gasoline inventories grew by 0.1 million barrels from the previous week, compared to analyst forecast of +0.61 million barrels. Distillate fuel inventories increased by 0.1 million barrels.

Crude oil imports declined by 545,000 bpd from the previous week, averaging 6.3 million bpd. Over the past four weeks, crude oil imports averaged 6.4 million bpd.

Strategic Petroleum Reserve increased from 380.0 million barrels to 380.6 million barrels as U.S. continued to buy oil for strategic reserves. Domestic oil production decreased from 13.3 million bpd to 13.2 million bpd. However, it is expected to increase in the near term as production returns after Hurricane Francine.

WTI oil settled near the $71.00 level as traders reacted to the EIA report. Falling crude inventories may provide additional support to the market, which is currently focused on rising tensions in the Middle East.

Brent oil made an attempt to settle above the $73.50 level as traders focused on the EIA data. From the technical point of view, Brent oil is trying to stay above the previous resistance at $72.50 – $73.00.

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