U.S. Crude Inventories Declined By 4.2 Million Barrels, beating analysts' expectations
The latest weekly oil status report from the US Energy Information Agency (EIA) shows that compared to the expected decrease of 1.95 million barrels by analysts, the US crude oil inventory has decreased by 4.2 million barrels.
Key points:
- Strategic Petroleum Reserve increased from 368.8 million barrels to 369.3 million barrels.
- Domestic oil production remained unchanged at 13.1 million bpd.
- Oil markets are losing some ground as traders react to the EIA report.
On May 30th, the US Energy Information Agency (EIA) released its weekly report on the state of oil. The report shows that crude oil inventories decreased by 4.2 million barrels compared to the analyst's expected decrease of 1.95 million barrels. At present, crude oil inventories are about 4% lower than the five-year average level during this period.
Gasoline inventories increased by 2 million barrels, while analysts expect a decrease of 400,000 barrels. Distilled fuel inventory increased by 2.5 million barrels.
The import volume of crude oil increased by 106,000 barrels per day, with an average of 6.8 million barrels per day. The four week average for crude oil imports is 6.8 million barrels per day.
As the United States continues to purchase oil for reserves, its strategic oil reserves have increased from 3.688 million barrels to 3.693 million barrels.
Domestic oil production remains at a level of 13.1 million barrels per day. The current oil price level is not sufficient to increase production above the current level.
As traders responded to the EIA report, WTI crude oil attempted to stabilize above $79. Although the significant decrease in crude oil inventories is a positive sign, the increase in gasoline inventories may bring some pressure to the market. At this point, WTI crude oil requires significant positive driving factors to stabilize above the recent resistance level of $79-80.
Brent crude oil approached the $83 level after the EIA report was released. The technical landscape of Brent crude oil remains unchanged, and it needs to stabilize at a resistance level of $83.5-84.5 in order to achieve sustainable upward mobility.
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