Crude Inventories Increased By 5.8 Million Barrels

On October 9, 2024, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories increased by 5.8 million barrels from the previous week, compared to analyst consensus of +2 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 declined by 6.3 million barrels, compared to analyst consensus of -1.1 million barrels. Distillate fuel inventories decreased by 3.1 million barrels from the previous week.

Crude oil imports declined by 389,000 bpd from the previous week, averaging 6.2 million bpd. Over the past four weeks, crude oil imports averaged 6.4 million bpd.

Strategic Petroleum Reserve increased from 382.6 million barrels to 382.9 million barrels as U.S. continued to buy oil for reserves.

Domestic oil production increased from 13.3 million bpd to 13.4 million bpd, which was a bearish development for the market.

WTI oil moved away from session lows as traders reacted to the EIA report. Currently, WTI oil is trying to settle back above the $72.50 level. The significant decline in gasoline inventories provided some support to the market. From a big picture point of view, oil traders stay focused on the developments in the Middle East, which will remain the key driver for oil prices in the upcoming trading sessions.

Brent oil gained some ground after the release of the report and moved towards the $76.00 level.

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