MASSIVE Build for Crude in EIA report.
- Crude Oil Inventory Build 16,283,000 barrels 🔻
- Gasoline Inventory Build of 2,316,000 barrels 🔻
- Distillates Inventory Decline of 1,300,000 barrels ✅
- Ethanol Inventory Build of 922,000 barrels 🔻
- Strategic Petroleum Reserve inventory NC
EIA report released today showed a huge increase far outpacing the estimated build.
The week ending February 10 saw the U.S. Energy Information Administration report an inventory build of 16.3 million barrels. This extends a string of weekly builds. Some of them quite sizeable, which have pushed inventories above the five-year seasonal average. The energy information authority estimated an inventory increase of 2.3 million barrels in gasoline for the same period, compared with a build of 5 million barrels in the previous week. Gasoline production remained almost unchanged on the prior week, averaging 9.1 million barrels daily. In middle distillates, the EIA estimated an inventory draw of 1.3 million barrels for the week to February 10, with production down on the week, averaging 4.5 barrels daily. Production was at 4.7 million bpd for the previous week, which saw an inventory increase of 2.9 million barrels.
Markets Take Notice.
Oil prices had dropped a day before the EIA reported its weekly inventory estimates, following the American Petroleum Institute’s inventory estimate, which saw a sizeable build of more than 10 million barrels. The Energy Information Administration’s figures came as no surprise after the API report, although the size of the estimated build was the largest in more than a month. At the time of writing, Brent crude was trading at $84.70 per barrel, and West Texas Intermediate was changing hands for $77.95 per barrel, both down by more than a percentage point from opening. The federal government’s announcement of a sale from the strategic petroleum reserve, which is already at a 40-year low, could have constrained the drop. Additionally, the latest CPI report from the Bureau of labor Statistics showed the rise in prices had slowed down. Quenching fears of continued rate hike aggressiveness from the Federal Reserve.