Crude oil inventories in the united states experienced a significant increase of 8.7 million barrels during the week ending January 31, as reported by the U.S. Energy Information Administration (EIA). This build aligns with seasonal Trends and follows a previous increase of 3.5 million barrels in the prior week.
- U.S. crude oil inventories increased by 8.7 million barrels.
- Crude oil prices declined over one percent.
- Motor gasoline inventories rose by 2.2 million barrels.
- Distillate inventories fell by 5.5 million barrels.
- Total products supplied increased by 3.3% year-over-year.
- Brent crude trading at $75.12 per barrel.
The recent data from the EIA indicates a notable rise in crude oil inventories, which has contributed to a decline in oil prices. As of the latest report, West Texas Intermediate (WTI) crude was down approximately $1 per gallon, trading at $71.60, while Brent crude dropped to $75.12 per barrel. The increase in crude inventories is significant, particularly in light of the previous week’s build.
In addition to the crude oil inventory increase, the EIA estimated that motor gasoline inventories rose by 2.2 million barrels, maintaining an average production of 9.2 million barrels per day. In contrast, middle distillate inventories fell by 5.5 million barrels, with production averaging 4.6 million barrels daily. Notably, total products supplied over the last four weeks averaged 20.6 million barrels per day, reflecting a 3.3% increase compared to the same period last year.
- Crude oil inventories increased by 8.7 million barrels.
- Gasoline inventories rose by 2.2 million barrels.
- Middle distillate inventories fell by 5.5 million barrels.
Following the release of the inventory data, the American Petroleum Institute (API) also reported a rise in crude oil inventories by 5.025 million barrels for the same week, alongside a gasoline stock increase of 5.426 million barrels. These figures indicate a broader trend of rising inventories that are impacting crude oil prices negatively.
The significant build in crude oil inventories and the corresponding decline in prices highlight the current dynamics of the oil market. As production levels and inventory changes continue to evolve, stakeholders should monitor these trends closely for their potential impact on pricing and supply.
