On October 23, the U.S. Energy Information Administration (EIA) released its latest Weekly Oil Status Report.The report showed that U.S. crude oil inventories increased by 5.5 million barrels compared with the previous week, far exceeding market expectations of 700,000 barrels.Despite this, current crude oil inventory levels are still about 4% below the average for the same period over the past five years.

The report also pointed out that gasoline inventories increased by 900,000 barrels from the previous week, compared with the market's previous expectation of a decrease of 1.6 million barrels.At the same time, distillate fuel inventories fell by 1.1 million barrels.The unexpected increase in gasoline inventories has become one of the main factors putting pressure on the oil market.

In terms of imports, U.S. crude oil imports increased by 902,000 barrels per day month-on-month, and the average daily import volume reached 6.4 million barrels.Over the past four weeks, the average U.S. crude oil imports have been 6.2 million barrels per day.

The United States continues to purchase additional crude oil for strategic reserves, and the Strategic Petroleum Reserve (SPR) has increased from 383.9 million barrels to 384.6 million barrels.

Domestic crude oil production in the United States remains unchanged at 13.5 million barrels per day, which has a negative impact on the oil market, as high production means sufficient market supply.

With the release of the EIA report, West Texas Intermediate crude oil (WTI) prices fell back, and traders responded more negatively to the increase in crude oil and gasoline inventories.Currently, WTI crude oil is trying to break below the key support level of US$70.80.

At the same time, Brent crude oil prices also fell back to around $75.00.At the macro level, oil market traders remain concerned about the intensity of demand in China and the European Union, and signs of weakness in the two major economies have exacerbated market uncertainty.