Crude Inventories Rise By 0.5 Million Barrels; WTI Oil Tests Session Highs

On April 16, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by +0.5 million barrels from the previous week, compared to analyst consensus of +0.4 million barrels. At current levels, crude inventories are about 6% below the five-year average for this time of the year.

Total motor gasoline inventories declined by -2.0 million barrels, compared to analyst forecast of -1.6 million barrels. Distillate fuel inventories decreased by -1.9 million barrels from the previous week.

U.S. crude oil imports declined by 189,000 bpd, averaging 6.0 million bpd. Over the past four weeks, U.S. crude oil imports averaged 6.2 million bpd.

Strategic Petroleum Reserve increased from 396.7 million barrels to 397 million barrels as U.S. continued to buy oil for reserves at a moderate pace.

Domestic oil production has slightly increased from 13.458 million bpd to 13.462 million bpd. From a big picture point of view, it looks that low oil prices have broken the upside trend in domestic production.

WTI oil gained ground as traders reacted to the EIA report. Currently, WTI oil is trying to settle above the $62.50 level. It should be noted that tariff news will remain the key catalyst for oil markets in the near term.

Brent oil made an attempt to settle above the $66.00 level after the release of the EIA report.

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