Crude Oil Inventories Rise By 3.2 Million Barrels, Exceeding Analyst Expectations

On March 27, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by 3.2 million barrels from the previous week, compared to analyst consensus of -1.28 million. At current levels, crude oil inventories are about 2% below the five-year average for this time of the year.

Total motor gasoline inventories grew by 1.3 million barrels, while analysts expected that they would decrease by 1.65 million barrels. Distillate fuel inventories decreased by 1.2 million barrels from the previous week.

Crude oil imports averaged 6.7 million bpd, rising by 424,000 bpd from the previous week.

Strategic Petroleum Reserve increased from 362.3 million barrels to 363.1 million barrels as U.S. continued to buy oil for strategic reserves. The purchases of oil for SPR have served as a material positive catalyst for oil markets this year.

Domestic oil production remained unchanged at 13.1 million barrels despite rising oil prices. Traders will closely monitor the dynamics of domestic oil production as it may have a significant impact on oil price dynamics.

WTI oil made an attempt to settle above the $81.50 level despite the surprising increase in crude oil inventories. Yesterday, API report showed that crude inventories increased by as much as 9.3 million barrels. The market has more confidence in EIA numbers, so they are seen as bullish after yesterday’s shocking API report.

Brent oil moved towards the $85.50 level as traders reacted to the EIA report. From a big picture point of view, Brent oil consolidates above the $85.00 level, and traders wait for stronger catalysts that could push Brent oil out of the current trading range.

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