Crude Inventories Increased By 12.0 Million Barrels

Key Insights

• Gasoline inventories decreased by 3.7 million barrels. 
• Strategic Petroleum Reserve increased from 358.0 million barrels to 358.8 million barrels. 
• Domestic oil production remained unchanged at 13.3 million barrels. 

On February 14, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by 12.0 million barrels from the previous week, compared to analyst consensus of +2.56 million.

Total motor gasoline inventories declined by 3.7 million barrels, while analysts expected that they would drop by 1.16 million barrels. Distillate fuel inventories decreased by 1.9 million barrels. Crude oil imports declined by 437,000 bpd, averaging 6.5 million bpd.

Strategic Petroleum Reserve increased from 358 million barrels to 358.8 million barrels as U.S. continued to buy oil for reserves. Domestic oil production remained unchanged at 13.3 million bpd.

WTI oil pulled back below the $78 level as traders reacted to the EIA report. The headline number triggered a wave of profit-taking. While traders stay focused on rising tensions in the Middle East, the significant increase in crude inventories is a material bearish catalyst for oil markets. The decline in gasoline inventories did not provide any support to oil prices.

Brent oil moved towards the $82.00 level after an unsuccessful attempt to settle above $83.50. Brent oil has been moving higher for six consecutive trading sessions, so traders may use today’s report as an excuse to take some profits off the table.

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