Crude Inventories Decline By 6.9 Million Barrels

On September 5, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories decreased by 6.9 million barrels from the previous week, compared to analyst consensus of -1.1 million barrels.

Total motor gasoline inventories grew by 0.8 million barrels, while analysts expected that they would decline by 1.1 million barrels. Distillate fuel inventories decreased by 0.4 million barrels from the previous week.

Strategic Petroleum Reserve increased from 377.9 million barrels to 379.7 million barrels as U.S. continued to buy oil for strategic reserves. Domestic oil production remained unchanged at 13.3 million bpd.

WTI oil moved away from session highs as traders reacted to the EIA report. Currently, WTI oil is trading near the $70.20 level.

Brent oil settled near the $73.70 level after the release of the EIA data. It should be noted that oil prices are supported by reports indicating OPEC+ plans to delay its production hike.

Today, traders also had a chance to a look at the EIA Weekly Natural Gas Storage Report. The report showed that working gas in storage increased by 13 Bcf from the previous week, compared to analyst consensus of +28 Bcf.

Natural gas  tested new highs as traders focused on the bullish EIA report. From the technical point of view, natural gas is trying to settle above the strong resistance level at $2.25 – $2.30.

For a look at all of today’s economic events, check out our economic calendar.