Surplus Crude Stocks: 1.3 Million Barrels Exceed Analyst Predictions

Surplus Gasoline Stocks: 8 Million Barrels Exceed Analysts' 2.5 Million Barrel Projection

Highlights

• Crude stocks expanded by 1.3 million barrels, and gasoline stocks rose by 8 million barrels.

• The substantial surge in gasoline inventories could impact oil prices.

• The Strategic Petroleum Reserve expanded from 354.4 million to 355 million barrels.

On January 10, the EIA published its Weekly Petroleum Status Report, revealing that crude inventories grew by 1.3 million barrels compared to the previous week, contrary to analysts' consensus of a decrease by 0.675 million barrels. Currently, U.S. crude oil inventories stand approximately 2% below the five-year average for this time of the year.

Additionally, total motor gasoline inventories increased by 8.0 million barrels, and distillate fuel inventories rose by 6.5 million barrels. Crude oil imports saw a decline of 654,000 bpd, averaging 6.2 million bpd.

Domestic oil production remained steady at 13.2 million bpd. Furthermore, the U.S. continued acquiring oil for reserves, leading the Strategic Petroleum Reserve to increase from 354.4 million to 355.0 million barrels.

Today, oil traders are closely monitoring developments in the Middle East. The shutdown of Libya’s Sharara oilfield, Houthis' attacks on ships, and concerns about the Israel-Hamas conflict are seen as factors that could bolster oil prices.

Despite this, the notable surge in gasoline inventories might prompt a market pullback. Following the release of the EIA report, WTI oil moved away from its session highs and settled below the $73.00 level, while Brent oil retraced below $78.00.