Crude Inventories Fall By 6.4 Million Barrels

On April 24, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 6.4 million barrels from the previous week. Analysts expected that crude inventories would increase by 1.6 million barrels. At current levels, crude inventories are about 3% below the five-year average for this time of the year.

Total motor gasoline inventories decreased by 0.6 million barrels, compared to analyst consensus of -1.4 million barrels. Distillate fuel inventories grew by 1.6 million barrels from the previous week.

Crude oil imports averaged 6.5 million bpd, mostly in line with the previous week. Over the past four weeks, imports averaged 6.5 million bpd.

Strategic Petroleum Reserve increased from 364.9 million barrels to 365.7 million barrels as U.S. continued to buy oil for strategic reserves.

Domestic oil production remained unchanged at 13.1 million barrels. It should be noted that domestic oil production has been stable in recent weeks, and higher oil prices did not provide sufficient incentives to boost production.

WTI oil moved higher after the release of the EIA report as traders focused on falling crude inventories. Currently, WTI oil is trying to settle above the $83.50 level.

Brent oil climbed above the $88.50 level as traders reacted to the EIA report. Traders also focus on the situation in the Middle East as Israel is reportedly planning an operation against Hamas in Rafah.

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