Crude Inventories Increased By 5.5 Million Barrels, Exceeding Analyst Estimates

On October 23, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by 5.5 million barrels from the previous week, compared to analyst consensus of +0.7 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 grew by 0.9 million barrels from the previous week, compared to analyst forecast of -1.6 million barrels. Distillate fuel inventories declined by 1.1 million barrels.

Crude oil imports increased by 902,000 bpd, averaging 6.4 million bpd. Over the past four weeks, crude oil imports averaged 6.2 million bpd.

Strategic Petroleum Reserve increased from 383.9 million barrels to 384.6 million barrels as U.S. continued to buy oil for strategic reserves.

Domestic oil production remained unchanged at 13.5 million bpd, which is bearish for oil markets as production has settled at high levels.

WTI oil pulled back as traders reacted to the EIA report. Rising crude and gasoline inventories served as key negative catalysts for oil markets. Currently, WTI oil is trying to settle below the $70.80. level.

Brent oil pulled back towards the $75.00 level after the release of the EIA report. From a big picture point of view, oil traders remain worried about the strength of demand in China and the EU, which is showing signs of economic weakness.

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