Crude Inventories Rise By 4.2 Million Barrels, Exceeding Analyst Expectations

On February 28, 2024, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by 4.2 million barrels from the previous week, compared to analyst consensus of +2.74 million barrels. At current levels, crude inventories are about 1% below the five-year average for this time of the year.

Total motor gasoline inventories decreased by 2.8 million barrels, compared to analyst consensus of -1.46 million. Distillate fuel inventories declined by 0.5 million barrels from the previous week.

Crude oil imports averaged 6.4 million bpd, declining by 269,000 bpd from the previous week.

Strategic Petroleum Reserve increased from 359.5 million barrels to 360.3 million barrels as U.S. continued to buy oil for reserves. The purchases of oil for SPR have provided material psychological support to oil markets in recent weeks.

Domestic oil production remained unchanged at 13.3 million bpd. Traders will stay focused on domestic production numbers as U.S. oil companies have previously highlighted their ambitions to boost production.

WTI oil settled near the $79.00 level as traders reacted to the EIA report. From the technical point of view, WTI oil is trying to settle above the key resistance at $79.00 – $80.00. The decline in gasoline inventories may provide additional support to oil markets.

Brent oil remained stuck near $82.50. Traders will also stay focused on the recent developments in the Middle East.

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