Crude Inventories Decline By 4.5 Million Barrels

On September 25, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 4.5 million barrels from the previous week, compared to analyst consensus of -1.4 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 1.5 million barrels, while analysts expected that they would remain unchanged. Distillate fuel inventories decreased by 2.2 million barrels from the previous week.

Crude oil imports increased by 135,000 bpd, averaging 6.5 million bpd. Crude oil imports averaged 6.4 million bpd over the past four weeks.

Domestic oil production remained unchanged at 13.2 million bpd. The hurricane season has put some pressure on domestic oil production, which pulled back from yearly highs.

Strategic Petroleum Reserve increased from 380.6 million barrels to 381.9 million barrels as U.S. continued to buy oil for reserves.

WTI oil moved away from session lows as traders reacted to the EIA report. Currently, WTI oil is trying to climb back above the $71.00 level. From the technical point of view, WTI oil consolidates below the nearest resistance level at $72.00 – $72.50.

Brent oil settled near the $74.50 level after the release of the EIA data. Traders worry that China’s stimulus measures would not boost the country’s demand for oil.

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