Oil prices under pressure as EIA report shows unexpected rise in US crude inventories
The report shows that US crude oil inventories increased by 3.7 million barrels last week, far exceeding analysts' expectations of a decrease of 1.55 million barrels.
Key points:
- Strategic Petroleum Reserve increased from 370.2 million barrels to 370.5 million barrels.
- Domestic oil production grew from 13.1 million bpd to 13.2 million bpd.
- Oil prices pulled back from sesion highs as traders reacted to the report.
On June 12th, the US Energy Information Agency (EIA) released its latest weekly oil status report. The report shows that US crude oil inventories increased by 3.7 million barrels last week, far exceeding analysts' expectations of a decrease of 1.55 million barrels. The current crude oil inventory level is approximately 4% lower than the five-year average level.
Inventory data details
Gasoline inventories increased by 2.6 million barrels, also higher than analyst expectations of 1.25 million barrels. And the inventory of distilled fuel increased by 900000 barrels.
Import and production of crude oil
Last week, the average import volume of crude oil from the United States reached 8.3 million barrels per day, an increase of 1.2 million barrels from the previous week. The increase in import volume is the main reason for the unexpected increase in crude oil inventories. In addition, the US strategic oil reserves have increased from 370.2 million barrels to 370.5 million barrels, reflecting the trend of the US continuing to purchase crude oil for reserves.
It is worth noting that the domestic crude oil production has increased from 13.1 million barrels per day to 13.2 million barrels. This development is bearish news for the oil market.
Market response
After the EIA report was released, WTI crude oil prices fell from their intraday high. Currently, WTI crude oil is attempting to fall below the level of $78.50 per barrel. The increase in inventory and the increase in domestic production are the main factors driving the decline in oil prices.
Similarly, Brent crude oil also faced pressure after the report was released. At present, Brent crude oil is attempting to fall below the level of $82.50 per barrel, and traders have chosen to take profits after rebounding from the low point in June.
The release of this EIA report not only has a direct impact on oil prices, but also provides the latest information on the supply and demand situation of US oil for the market. Investors need to closely monitor future market trends.
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