EIA Report: Crude Inventories Declined By 4.6 Million Barrels
Crude Inventories Decline: A Shift in Market Dynamics
On August 21, 2024, the EIA released its Weekly Petroleum Status Report, revealing i>crude inventories declined by 4.6 million barrels from the previous week. This was notably lower than analyst consensus of -2.72 million barrels, demonstrating tightening supply in the market. Current inventory levels are now about 5% below the five-year average for this time of year.
Gasoline and Distillate Fuel Inventories
- Total motor gasoline inventories decreased by 1.6 million barrels, while the consensus estimated a decrease of -1 million barrels.
- Distillate fuel inventories experienced a drop of 3.3 million barrels from the previous week.
Crude Oil Supply and Demand Metrics
Crude oil imports rose by 366,000 bpd, averaging 6.7 million bpd, with a four-week average of 6.5 million bpd. The Strategic Petroleum Reserve saw a slight increase from 376.5 million barrels to 377.2 million barrels as the U.S. continued to buy oil for reserves. Domestic oil production fluctuated back to 13.4 million bpd from a previous 13.3 million bpd.
Market Reaction
The WTI oil price gained traction as traders processed the EIA report, with current attempts to settle above $74.00. However, oil markets faced pressure amidst geopolitical developments, including Gaza ceasefire talks and China’s economic challenges. The impact of this EIA report on sustainable oil prices remains to be seen.
Brent Oil Performance
Following the EIA data, Brent oil strived to regain stability above $78.00.
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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.