Crude Inventories Rise By 3.9 Million Barrels, Exceeding Analyst Expectations

On October 2, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by 3.9 million barrels from the previous week, compared to analyst consensus of -1.3 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 1.1 million barrels from the previous week, compared to analyst forecast of -0.1 million barrels. Distillate fuel inventories declined by 1.3 million barrels.

Crude oil imports increased by 171,000 bpd, averaging 6.6 million bpd. Over the past four weeks, crude oil imports averaged 6.6 million bpd.

Domestic oil production increased by 13.2 million bpd to 13.3 million bpd as companies got back to work after the hurricane.

Strategic Petroleum Reserve increased from 381.6 million barrels to 382.6 million barrels as U.S. continued to buy oil for reserves.

WTI oil moved away from session highs as traders reacted to the report. Currently, WTI oil is trying to settle below the $71.50 level. It remains to be seen whether the bearish report puts significant pressure on oil prices today. Traders stay focused on the situation in the Middle East and wait for Israel’s response to Iran’s attack.

Brent oil pulled back below the $75.50 level after the release of the EIA data. Most likely, Middle East tensions will remain the key driver for Brent oil in today’s trading session.

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