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WTI Oil Pulls Back From Session Highs After EIA Report

By:
Vladimir Zernov
Published: Jul 19, 2023, 14:47 GMT+00:00

Oil markets moved lower as traders focused on the lower-than-expected inventory draw.

WTI Oil

In this article:

Key Insights

  • Crude inventories decreased by 0.7 million barrels from the previous week. 
  • Strategic Petroleum Reserve was unchanged at 346.8 million barrels. 
  • Domestic oil production was also unchanged at 12.3 million bpd. 

On July 19, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 0.7 million barrels from the previous week, compared to analyst consensus of -2.44 million barrels. At current levels, crude inventories are about 1% above the five-year average for this time of the year.

Total motor gasoline inventories declined by 1.1 million barrels, while distillate fuel inventories have slightly increased. Crude oil imports grew by 1.3 million bpd, averaging 7.2 million bpd.

Strategic Petroleum Reserve remained unchanged at 346.8 million barrels. SPR is at multi-decade lows, and traders expect that U.S. will start buying oil to replenish reserves.

Domestic oil production has also remained unchanged at 12.3 million bpd. In recent weeks, domestic oil production was stuck in the 12.2 million bpd – 12.4 million bpd range.

WTI oil pulled back from session highs after the release of the EIA report. Traders focused on the headline crude inventory numbers. It should be noted that WTI oil was close to multi-month highs, so the weaker-than-expected report triggered a sell-off. Currently, WTI oil is trying to settle below the $76 level.

Brent oil pulled back towards the $80 level as traders reacted to EIA data. While the short-term trend remains bullish, traders remain sensitive to any negative news.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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