Oil markets faced downward pressure as traders concentrated on increasing inventories, poor economic data from Europe, and the Israel-Hamas conflict.
On October 25, the EIA published its Weekly Petroleum Status Report, revealing a 1.4 million barrel increase in crude oil inventories from the previous week, surpassing the analyst consensus of +0.24 million.
Motor gasoline inventories saw a slight rise of 0.2 million barrels, while distillate fuel inventories decreased by 1.7 million barrels. The U.S. crude oil imports averaged 6.0 million bpd, reflecting a 71,000 bpd increase from the prior week.
The domestic oil production remained steady at 13.2 million bpd. This stable production at multi-month highs suggests that current oil prices are providing adequate incentives for oil producers.
The Strategic Petroleum Reserve held firm at 351.3 million barrels. The U.S. appears hesitant to purchase oil at current price levels and may be anticipating a further decline.
The oil market continues to face pressure as traders react to the EIA report. WTI crude oil prices approached the $83.00 level, and Brent crude dropped below $87.00.
Traders also remain attentive to the Israel-Hamas conflict, which has been a major driving force in recent weeks. The absence of a ground operation against Hamas and the trading patterns indicate a belief among oil traders that the conflict will not escalate beyond the current circumstances.
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