The crude inventories have decreased by 10.6 million barrels.

Hightlights

• Crude oil stockpiles saw a decline of 10.6 million barrels compared to the previous week.
• The Strategic Petroleum Reserve increased from 348.9 million barrels to 349.5 million barrels.
• The production of oil within the country remained steady at 12.8 million barrels per day.

The Weekly Petroleum Status Report released by the EIA on August 30 revealed that crude inventories experienced a substantial decline of 10.6 million barrels compared to the previous week, surpassing the analyst consensus of -3.3 million barrels.

Motor gasoline inventories decreased by 0.2 million barrels, while distillate fuel inventories saw an increase of 1.2 million barrels. The import of crude oil decreased by 316,000 barrels per day, averaging at 6.6 million barrels per day.

The U.S. continued to acquire oil for its Strategic Petroleum Reserve (SPR), resulting in an increase from 348.9 million barrels to 349.5 million barrels. It should be noted that the SPR is currently at historically low levels, necessitating the need to replenish reserves despite rising prices.

Domestic oil production remained steady at 12.8 million barrels per day, unaffected by the recent retreat in oil markets.

Traders will also keep a close eye on the military coup unfolding in Gabon, an OPEC member. The oil market is already tight, and any additional disruptions to production could significantly impact oil prices.

Presently, WTI oil is attempting to stabilize above the $82.00 level. The substantial decline in crude inventories may offer additional support to the oil market. Meanwhile, Brent oil is testing the $85.50 level.