Crude Inventories Decline By 10.6 Million Barrels
- Crude inventories decreased by 10.6 million barrels from the previous week.
- Strategic Petroleum Reserve grew from 348.9 million barrels to 349.5 million barrels.
- Domestic oil production was unchanged at 12.8 million bpd.
On August 30, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 10.6 million barrels from the previous week, compared to analyst consensus of -3.3 million barrels.
Total motor gasoline inventories decreased by 0.2 million barrels, while distillate fuel inventories grew by 1.2 million barrels. Crude oil imports declined by 316,000 bpd, averaging 6.6 million bpd.
The U.S. continued to purchase oil for the Strategic Petroleum Reserve (SPR). As a result, SPR increased from 348.9 million barrels to 349.5 million barrels. It should be noted that SPR remains close to multi-decade lows, so the U.S. is buying oil despite rising prices as it must replenish reserves.
Domestic oil production remained unchanged at 12.8 million bpd. The recent pullback in the oil markets did not have any impact on domestic oil producers.
Today, traders will also stay focused on the military coup in Gabon, which is an OPEC member. Oil markets stay tight, and additional production disruptions may provide significant support to oil prices.
Currently, WTI oil is trying to settle above the $82.00 level. The significant decline in crude inventories may provide additional support to the oil market. Meanwhile, Brent oil is testing the $85.50 level.
For a look at all of today’s economic events, check out our economic calendar.