On April 10th, the US Energy Information Administration (EIA) released a weekly oil inventory report. The report shows that compared to the previous week, crude oil inventories have increased by 5.8 million barrels, while analysts expect an increase of 2.37 million barrels. At present, the level of crude oil inventory is about 2% lower than the five-year average level of the same period in previous years.

The total gasoline inventory has increased by 700,000 barrels compared to the previous week, while analysts expect a decrease of 1.32 million barrels. The inventory of distilled fuel produced by the refinery has increased by 1.7 million barrels.

The average daily import of crude oil is 6.4 million barrels, a decrease of 183,000 barrels from the previous week. Crude oil imports are slightly below the four-week average of 6.5 million barrels per day.

As the United States continues to purchase oil for strategic reserves, the strategic oil reserves have increased from 363.8 million barrels to 364.2 million barrels.

Despite high oil prices, domestic oil production in the United States remains at a level of 13.1 million barrels per day. Currently, it appears that WTI crude oil must remain stable at a level above $90.00 to drive domestic oil production growth.

While traders responded to the EIA report, WTI crude oil prices fluctuated within the range of $85.00 to $85.50. Crude oil inventories exceeded analysts' expectations, which is bearish for the oil market. However, despite the rise in oil prices, domestic oil production has not yet increased, which is a positive factor for the oil market.

Due to traders focusing on the growth of crude oil inventories, Brent crude oil prices are approaching the level of $90.00. It is worth noting that there is a geopolitical risk premium in oil price trading, but there is currently no serious risk to the oil supply route.