U.S. Crude Oil Inventories Surge as Prices Rise
U.S. crude oil inventories increased by 3.7 million barrels last week, as reported by the Energy Information Administration (EIA). This follows a build of 2.780 million barrels reported earlier by the American Petroleum Institute (API). Meanwhile, Brent crude oil and West Texas Intermediate (WTI) both saw price increases.
The EIA data, released on Wednesday, showed that total commercial crude oil stockpiles now stand at 420.3 million barrels, 4% below the five-year average. The four-week average for distillate supplied was 3.8 million barrels per day, down 1.1% year over year. Total product supplied over the last four-week period averaged 20.9 million barrels per day, an increase of 1.7% compared to the same timeframe last year.
Motor gasoline inventories decreased by 1.6 million barrels, following a large 4.1-million-barrel increase the week before. Gasoline demand averaged 8.8 million barrels per day over the last four-week period. Inventories of middle distillates fell by 2.0 million barrels, with daily production increasing by 210,000 barrels.
On the New York market, Brent crude oil was trading at $66.0 per barrel on Wednesday morning, up $0.62 (0.95%) for the day. WTI was also up, trading $0.68 per barrel higher (1.10%) in mid-morning trade. The position of Brent Crude Oil on the New York market morning of the day the EIA data was released is not specified.
The increase in crude oil inventories and the decrease in gasoline inventories, coupled with steady demand, may indicate a shift in supply and demand dynamics. The price increases in Brent crude oil and WTI suggest a positive outlook for the oil market. However, the lack of specific data on Brent Crude Oil's position in New York on the day of the EIA report may provide some uncertainty.
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