Crude Oil Stocks Decline by 6.9 Million Barrels"

Oil prices have recovered from their recent low levels following traders' response to the EIA report.  

Highlights

• Crude stocks dropped by 6.9 million barrels, and gasoline stocks declined by 0.6 million barrels.
• The Strategic Petroleum Reserve grew from 352.5 million barrels to 353.3 million barrels.
• There was no change in domestic oil production, which remained steady at 13.3 million barrels.

On December 28, the EIA published its Weekly Petroleum Status report. The report revealed a 6.9 million barrel decrease in crude inventories compared to the previous week, surpassing the analyst consensus of -2.7 million barrels. Currently, crude oil inventories stand approximately 1% below the five-year average for this time of the year.

Total motor gasoline stocks reduced by 0.6 million barrels, while distillate fuel inventories increased by 0.8 million barrels. Crude oil imports averaged 6.3 million bpd, down by 0.415 million bpd from the prior week.

Domestic oil production remained steady at 13.3 million barrels. The Strategic Petroleum Reserve expanded from 352.5 million to 353.3 million barrels as the U.S. persisted in purchasing oil for reserves.

WTI oil prices rose in response to the report. Currently, WTI oil is striving to climb back above the $73.70 mark. Recent concerns about transportation in the Red Sea had placed pressure on oil markets, but the EIA report may offer some support to oil prices as crude inventories fell more than anticipated, and the U.S. procured additional oil for the Strategic Petroleum Reserve.

Brent oil also saw an increase in value after the release of the EIA data and attempted to settle above the $79.00 level.