Crude Oil Inventories Unexpectedly Rise, Driving Prices Up
According to data from the American Petroleum Institute (API), crude oil inventories in the US rose unexpectedly by 1.319 million barrels this week. Analysts had predicted a draw of 1.969 million barrels, making this increase a surprising development for the market. The total number of barrels of crude oil gained so far this year has surpassed 35 million, though the net draw in inventories since April remains just under 12 million barrels.
In addition, the Department of Energy (DoE) reported that there have been no changes to the inventory held in the Strategic Petroleum Reserve (SPR) for the second consecutive week. The SPR inventory stands steady at a 40-year low of 346.8 million barrels.
As a result of this news, the price of West Texas Intermediate (WTI) and Brent crude both saw gains on Tuesday. WTI was trading at $79.59 per barrel, while Brent crude was trading at $83.61. These price increases reflect the impact of the unexpected rise in inventories on the market.
Meanwhile, gasoline inventories experienced a decrease of 1.043 million barrels this week. On the other hand, distillate inventories rose by 1.614 million barrels, indicating variations in the supply and demand of different oil products.
In terms of production, the US maintained its crude oil production rate at 12.3 million barrels per day for the week ending July 14. This figure demonstrates the country’s ability to continually meet domestic and international demands.
Furthermore, inventories at Cushing, Oklahoma fell by 2.34 million barrels, reinforcing the overall trend of declining inventory levels in the US.
This article was written by Julianne Geiger for Oilprice.com and serves as a reminder of the constant fluctuations in the oil market. These unexpected shifts in inventory levels have once again proven the volatility of the industry, highlighting the importance of closely monitoring and adapting to market trends.
