Crude Oil Stockpile Surges 4.2 Million Barrels, Beats Analyst Predictions

Highlights

• Gasoline inventories dropped by 2.8 million barrels compared to the prior week.
• Domestic oil production held steady at 13.3 million barrels per day.
• The Strategic Petroleum Reserve rose from 359.5 million barrels to 360.3 million barrels.  

On February 28, 2024, the EIA released its Weekly Petroleum Status Report, which indicated a 4.2 million-barrel increase in crude inventories from the previous week, surpassing the analyst consensus of +2.74 million barrels. Currently, crude inventories stand about 1% below the five-year average for this time of year.

Total motor gasoline inventories decreased by 2.8 million barrels, compared to the analyst consensus of -1.46 million, while distillate fuel inventories declined by 0.5 million barrels from the previous week.

The average crude oil imports totaled 6.4 million bpd, marking a decline of 269,000 bpd from the previous week.

The Strategic Petroleum Reserve grew from 359.5 million barrels to 360.3 million barrels as the U.S. continued to procure oil for reserves. The purchases of oil for the SPR have provided significant psychological support to oil markets in recent weeks.

Domestic oil production remained steady at 13.3 million bpd, with traders closely monitoring these figures as U.S. oil companies have expressed their intentions to increase production.

WTI oil settled around the $79.00 level following the EIA report. From a technical perspective, WTI oil is aiming to establish stability above the critical resistance at $79.00 – $80.00. The decline in gasoline inventories may further bolster support for oil markets.

Brent oil remained relatively unchanged near $82.50, with traders closely monitoring recent events in the Middle East.