Oil Prices Reverse Despite Crude Inventory Build

Crude prices saw a small jump this morning after the Energy Information Administration reported an estimated inventory increase of 3.6 million barrels for the week to November 10.

The EIA did not publish data for the week before last, hence this report covers both weeks.

In fuels, the agency reported a gasoline inventory draw of 1.5 million barrels for last week, with production averaging 9.4 million barrels daily.

For middle distillates, the EIA estimated an inventory decline of 1.4 million barrels for the week to November 10, with production averaging 4.8 million barrels daily.

Refineries processed 15.4 million barrels of crude daily, operating at 86.1% of capacity amid slumping refining margins.

Imports averaged 6.4 million barrels daily over the last week.

In its latest weekly inventory report before the weekly pause, the EIA had estimated a modest crude oil inventory build of less than 1 million barrels, as well as a minor inventory rise in gasoline, at 100,000 barrels, and yet another draw in middle distillate stocks, at 800,000 barrels for the week to October 27.

Oil prices meanwhile have stabilized as concern about Middle East supply disruption dissipated and so did fears of a major economic slowdown. The latest U.S. inflation data contributed to the latter, with the October figure marking the first decline in four months, to 3.2%.

At the same time, the International Energy Agency sought to quench supply concerns by saying that the oil market will be less tight than earlier feared in the fourth quarter thanks to higher global production.

The IEA also had tome bullish news for oil demand in its latest Oil Market Report, saying it will grow both this year and next despite broadly slower economic growth.

"For now, with demand still exceeding available supplies heading into the Northern Hemisphere winter, market balances will remain vulnerable to heightened economic and geopolitical risks – and further volatility ahead," the agency said in its report.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

• Fears of Contamination Prompt More Quality Checks of WTI Midland Crude
• Court Orders Biden Administration to Hold Oil and Gas Lease Sale
• Iran Warns Expansion Of The Gaza War Is ‘Inevitable’