U.S. Oil Supplies Rise More Than Expected Amid Market Reactions

Wednesday, 11 September 2024, 07:57

U.S. oil supplies rise more than expected, with commercial crude inventories increasing by 800,000 barrels. The latest EIA report indicates this unexpected increase following three weeks of declines. Analysts had predicted a smaller supply climb of only 300,000 barrels, showing the volatility in the oil market.
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U.S. Oil Supplies Rise More Than Expected Amid Market Reactions

Understanding the Rise in U.S. Oil Supplies

U.S. oil supplies rise more than expected, as the Energy Information Administration (EIA) reported a climb in commercial crude inventories of 800,000 barrels for the week ending Sept. 6. This increase comes after three consecutive weeks of declines, highlighting the challenges in forecasting supply movements in the oil sector.

Analysts' Forecasts vs. Reality

In contrast, analysts at Macquarie had anticipated only a 300,000 barrel increase. Additionally, the American Petroleum Institute reported a surprising fall in crude inventory of 2.79 million barrels, amplifying market uncertainties.

Weekly Supply Increases

  • Weekly increases included:
  • Gasoline: Up 2.3 million barrels
  • Distillates: Up 2.3 million barrels

Macquarie's projections also pointed to an anticipated decline of 900,000 barrels for gasoline, showcasing the unpredictability in current oil supply trends.

Market Response to Supply Fluctuations

Following these reports, October West Texas Intermediate crude rose by 15 cents, or 0.2%, to reach $65.90 a barrel on the New York Mercantile Exchange, despite having earlier peaked at $67.58. This response indicates a market still reacting to disruptions, such as the output issues in the Gulf of Mexico due to Hurricane Francine.


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.


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