Oil markets retreated from their peak levels as traders responded to the EIA report.
On February 14, 2024, the EIA published its Weekly Petroleum Status Report. The report revealed a significant 12.0 million barrel increase in crude inventories from the prior week, surpassing the analyst consensus of +2.56 million.
Total motor gasoline inventories experienced a notable drop of 3.7 million barrels, deviating from the expected decrease of 1.16 million barrels. Additionally, distillate fuel inventories decreased by 1.9 million barrels. The report also noted a 437,000 bpd reduction in crude oil imports, averaging 6.5 million bpd.
The Strategic Petroleum Reserve saw an increase from 358 million barrels to 358.8 million barrels as the U.S. continued its oil purchases for reserves. Furthermore, domestic oil production remained stable at 13.3 million bpd.
WTI oil retreated below the $78 mark as traders responded to the EIA report. The headline figure prompted a flurry of profit-taking. Despite the ongoing focus on escalating tensions in the Middle East, the substantial increase in crude inventories served as a significant bearish factor for oil markets. Conversely, the decline in gasoline inventories failed to lend any support to oil prices.
Brent oil approached the $82.00 threshold after an unsuccessful attempt to settle above $83.50. Following six consecutive sessions of upward movement, traders may view the current report as an opportunity to secure some profits.
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