Crude Inventories Rise By 1.4 Million Barrels, Exceeding Analyst Expectations

On August 14, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by 1.4 million barrels from the previous week, compared to analyst consensus of -2 million barrels.

Total motor gasoline inventories declined by 2.9 million barrels from the previous week, compared to analyst forecast of -1.4 million barrels. Distillate fuel inventories declined by 1.7 million barrels.

U.S. crude oil imports averaged 6.3 million bpd, up by 61,000 bpd from the previous week. Over the past four weeks, crude oil imports averaged 6.6 million bpd.

Strategic Petroleum Reserve increased from 375.8 million barrels to 376.5 million barrels as U.S. continued to buy oil for reserves. Domestic oil production declined from 13.4 million bpd to 13.3 million bpd.

WTI oil  remained under pressure as traders reacted to the EIA report. From a big picture point of view, traders continue to take profits after the strong rally. Some traders are ready to bet that the situation in the Middle East will remain under control, and the market’s attention will turn to the weaker-than-expected demand for oil.  Currently, WTI oil is trying to settle below $77.70.

Brent oil moved towards the psychologically important $80.00 level as traders focused on the higher-than-expected crude inventories in the U.S.

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