Strategic Petroleum Reserve Decreased To 351 Million Barrels
- Crude inventories decreased by 2.2 million barrels.
- Strategic Petroleum Reserve declined from 351.2 million barrels to 351.0 million barrels.
- Domestic oil production remained unchanged at 12.9 million bpd.
On September 27, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 2.2 million barrels from the previous week, compared to analyst consensus of -0.3 million barrels.
Total motor gasoline inventories grew by 1.0 million barrels, while distillate fuel inventories increased by 0.4 million barrels.
U.S. crude oil imports increased by 711,000 bpd from the previous week, averaging 7.2 million bpd. The significant increase in crude oil imports did not lead to an increase in crude inventories, which is a bullish sign.
Interestingly, Strategic Petroleum Reserve declined from 351.2 million barrels to 351.0 million barrels. In recent weeks, U.S. has started to buy oil for the strategic reserves. However, oil prices were moving higher, and it looks that U.S. decided to take a pause.
Strategic Petroleum Reserve remains near multi-decade lows, so it remains to be seen whether U.S. is ready to sell oil from the strategic reserves to put pressure on oil prices.
Domestic oil production remained unchanged at 12.9 million bpd. At this point, rising oil prices did not provide enough incentives to push domestic production above 13.0 million bpd.
WTI oil settled near multi-month highs after the release of the EIA report. Currently, WTI oil is trying to get to the test of the $93.00 level.
Brent oil has also enjoyed strong support in today’s trading session. Brent oil is trying to settle above the $94.00 level as traders react to the EIA report.
For a look at all of today’s economic events, check out our economic calendar.