Crude Store Increases by 1.6 Million Barrels, Surpassing Analyst Predictions

• Crude stockpiles increased by 1.6 million barrels compared to the prior week.
• The production of oil within the country held steady at 13.2 million barrels per day.
• WTI crude oil has begun to distance itself from the day's lowest levels subsequent to the publication of the EIA report.

On November 29, the EIA published its Weekly Petroleum Status Report, revealing a 1.6 million barrel increase in crude inventories from the previous week. Analysts had anticipated a 0.9 million barrel decline in crude inventories.

Motor gasoline inventories grew by 1.8 million barrels, while distillate fuel inventories rose by 5.2 million barrels. Crude oil imports averaged 5.8 million barrels per day, marking a decrease of nearly 0.7 million barrels per day from the prior week.

Over the same period, domestic oil production held steady at 13.2 million barrels per day. Current oil prices are not offering enough incentive to ramp up production, though it's worth noting that domestic oil production remains at multi-month highs.

Notably, the Strategic Petroleum Reserve expanded from 351.3 million barrels to 351.6 million barrels. Following a significant decline from September highs, the U.S. has begun purchasing oil for reserves.

WTI oil prices are attempting to climb from session lows following the EIA report release. The modest purchases for the Strategic Petroleum Reserve could act as a positive catalyst for oil markets.

Brent oil settled in the $81.00 – $81.50 range. While the EIA report is significant for oil markets, traders are also awaiting updates from OPEC+. Additionally, the Black Sea storm-induced oil supply disruption continues to offer some support to oil prices.