Drop of 4.6 Million Barrels in Crude Stockpile.

Highlights

•  Crude stockpiles fell short of analyst predictions.
• The Strategic Petroleum Reserve rose from 351.6 million barrels to 351.9 million barrels.
• Domestic oil output dropped from 13.2 million bpd to 13.1 million bpd.  

On December 6, the EIA's Weekly Petroleum Status Report showed a significant decrease of 4.6 million barrels in crude inventories compared to the analyst consensus of -1.35 million barrels. Additionally, motor gasoline inventories saw a notable increase of 5.4 million barrels, while distillate fuel inventories grew by 1.3 million barrels. 

Crude oil imports also rose by 1.7 million bpd to an average of 7.5 million bpd, and the Strategic Petroleum Reserve increased from 351.6 million barrels to 351.9 million barrels as the U.S. continued to procure oil for reserves. 

It's worth noting that domestic oil production decreased from 13.2 million bpd to 13.1 million bpd in response to the market's decline. Consequently, WTI oil settled below the $70.50 level after the report was released. Traders remain concerned about demand, with the increase in gasoline inventories possibly exerting further downward pressure on WTI oil. However, the reduction in domestic oil production may offer some support to oil markets.

Brent oil approached settling below the $75.50 level, reflecting a bearish market sentiment as traders question whether OPEC+ production cuts will effectively support the market.