Oil prices pull back as EIA reports sharp drop in US crude inventories
The EIA report shows that as of last week, US crude oil inventories have decreased by 12.2 million barrels, far exceeding analysts' expectations of 900,000 barrels.
Key points:
- Strategic oil reserves increased from 372.2 million barrels to 372.6 million barrels.
- US domestic oil production in the United States remains unchanged at 13.2 million barrels per day.
- Crude oil market retreats as traders take profits,
On July 3rd, the US Energy Information Agency (EIA) released a weekly report on the state of oil. The report shows that as of last week, US crude oil inventories have decreased by 12.2 million barrels, far exceeding analysts' expectations of 900,000 barrels. The current level of crude oil inventory is about 4% lower than the average level of the same period in the past five years.
The total gasoline inventory has decreased by 2.2 million barrels, with analysts expecting a decrease of 1 million barrels. Distillate fuel inventory decreased by 1.5 million barrels.
Last week, US crude oil imports decreased by 65,000 barrels per day, averaging 6.5 million barrels per day. In the past four weeks, the average import volume of crude oil was 7.1 million barrels per day.
Strategic oil reserves have increased from 372.2 million barrels to 372.6 million barrels, and the United States continues to purchase oil to increase reserves.
Domestic crude oil production in the United States remains unchanged at 13.2 million barrels per day. It is currently unclear whether the current oil prices are sufficient to incentivize production to move towards a level of 13.5 million barrels per day.
WTI crude oil prices fell as traders responded to the report. Traders continued to profit take as they approached several weeks of high. Currently, WTI crude oil prices are attempting to stabilize below $82.50.
Brent crude oil prices fell below the $86.00 level on profit taking. Despite a significant decline in crude oil inventories, it has not provided support for the oil market.
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