Crude Inventories Fall By 6.9 Million Barrels

Key Insights

• Crude inventories decreased by 6.9 million barrels, while gasoline inventories fell by 0.6 million barrels. 
• Strategic Petroleum Reserve increased from 352.5 million barrels to 353.3 million barrels. 
• Domestic oil production remained unchanged at 13.3 million barrels. 

On December 28, EIA released its Weekly Petroleum Status report. The report indicated that crude inventories declined by 6.9 million barrels from the previous week, compared to analyst consensus of -2.7 million barrels. At current levels, crude oil inventories are about 1% below the five-year average for this time of the year.

Total motor gasoline inventories decreased by 0.6 million barrels, while distillate fuel inventories grew by 0.8 million barrels. Crude oil imports averaged 6.3 million bpd, declining by 0.415 million bpd from the previous week.

Domestic oil production remained unchanged at 13.3 million. Strategic Petroleum Reserve increased from 352.5 million to 353.3 million as the U.S. continued to buy oil for reserves.

WTI oil moved higher as traders reacted to the report. Currently, WTI oil is trying to settle back above the $73.70 level. Oil markets have recently found themselves under pressure as concerns about transportation in Red Sea eased. The EIA report may provide some support to oil prices as crude inventories fell more than expected while the U.S. bought more oil for the Strategic Petroleum Reserve.

Brent oil  also gained some ground after the release of EIA data and made an attempt to settle above the $79.00 level.

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