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Crude Inventories Declined By 2.5 Million Barrels, More Than Expected

FXEmpire.com -

On May 15, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 2.5 million barrels from the previous week, compared to analyst consensus of -1.4 million barrels. At current levels, crude inventories are about 4% below the five-year average for this time of the year.

Total motor gasoline inventores decreased by 0.2 million barrels from the previous week, while analysts expected that they would grow by 0.9 million barrels. Distillate fuel inventories have slightly declined.

U.S. crude oil imports decreased by 226,000 bpd from the previous week, averaging 6.7 million bpd.

Strategic Petroleum Reserve increased from 367.2 million barrels to 367.8 million barrels as U.S. continued to buy oil for strategic reserves.

Domestic oil production remained unchanged at 13.1 million bpd, which is not surprising as oil prices have been moving lower in recent weeks.

WTI oil rebounded from session lows as traders reacted to the EIA report. Currently, WTI oil is trying to settle above the $77.50 level. Oil prices settled near multi-month lows as traders were worried about the strength of the demand for oil.

Brent oil settled near the $82.00 level after the release of the EIA report. The geopolitical premium for oil prices have significantly declined in recent weeks as traders do not believe in supply disruptions in the Middle East. At this point, oil markets need significant positive catalysts to break the current trend.

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

This article was originally posted on FX Empire

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