Crude Inventories Increase By 1.3 Million Barrels, Exceeding Analyst Expectations

Key Insights

• Crude inventories grew by 1.3 million barrels, while gasoline inventories increased by 8 million barrels.  
• The significant increase in gasoline inventories may put pressure on oil prices. 
• Strategic Petroleum Reserve grew from 354.4 million to 355 million.

On January 10, EIA released Weekly Petroleum Status Report. The report indicated that crude inventories increased by 1.3 million barrels from the previous week, compared to analyst consensus of -0.675 million. At current levels, U.S. crude oil inventories are about 2% below the five-year average for this time of the year.

Total motor gasoline inventories grew by 8.0 million barrels, while distiallate fuel inventories increased by 6.5 million barrels. Crude oil imports declined by 654,000 bpd, averaging 6.2 million bpd.

Domestic oil production remained unchanged at 13.2 million bpd. U.S. continued to buy oil for reserves, and the Strategic Petroleum Reserve increased from 354.4 million to 355.0 million.

Today, oil traders will also focus on the news from Middle East. The shutdown of Libya’s Sharara oilfield, Houthis’ attacks on ships, and concerns about Israel – Hamas conflict serve as bullish catalysts for oil prices.

However, the significant increase in gasoline inventories may trigger a pullback. WTI oil moved away from session highs after the release of the EIA report and settled below the $73.00 level. Brent oil pulled back below $78.00.

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