Crude Inventories Declined By 0.5 Million Barrels

On October 30, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 0.5 million barrels from the previous week, compared to analyst consensus of +2.3 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 declined by 2.7 million barrels, compared to analyst forecast of +0.6 million. Distillate fuel inventories declined by 1.0 million barrels from the previous week.

Crude oil imports declined by 456,000 bpd, averaging 6.0 million bpd. Over the past four weeks, crude oil imports averaged 6.0 million bpd.

Strategic Petroleum Reserve increased from 384.6 million barrels to 385.8 million barrels as U.S. continued to buy oil for reserves.

Domestic oil production remained unchanged at 13.5 million. High levels of domestic production serve as a bearish catalyst for oil markets.

WTI oil moved higher as traders reacted to the EIA report. Currently, WTI oil is trying to settle above the $68.30 level. From a big picture point of view, some traders are ready to bet on a rebound after the recent sell-off, which was triggered by the decline in geopolitical premium.

Brent oil settled above the $72.00 level after the release of the EIA data. Falling crude oil and gasoline inventories may provide additional support to oil markets today.

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