Crude oil prices reversed their decline today, after the U.S. Energy Information Administration reported an estimated inventory draw of 4.3 million barrels for the week to December 8.
This compared with a draw of 4.6 million barrels for the previous week, which, however, combined with builds in gasoline and middle distillate inventories to put a lid on prices.
A day earlier, the American Petroleum Institute estimated a draw in crude oil inventories of 2.35 million barrels for the week to December 8, along with a robust build in gasoline inventories and a modest one in middle distillates.
For the week to December 8, the EIA estimated a modest gasoline inventory build of 400,000 barrels, with production averaging 9.5 million barrels daily, a slight increase on the week.
This compared with a build of 5.4 million barrels for the previous week, when production stood at an average of 9.5 million barrels daily.
In middle distillates, the EIA reported an inventory increase of 1.5 million barrels for the week to December 8, with production averaging 5 million barrels daily.
This compared with an inventory increase of 1.3 million barrels for the previous week, with average daily production at 5.1 million barrels.
Oil prices have this week extended their losing streak after seven consecutive weeks of losses on the back of evidence of robust supply and projected further growth in U.S. output next year.
WTI has fallen below $70 per barrel and Brent crude is trading below $75 per barrel. The EIA on Tuesday revised down its forecast for Brent crude prices for 2024, now expecting them to average $83 per barrel, down from an earlier projection of $93 per barrel. The EIA attributed the decrease to "ongoing concerns around global oil demand growth."
The authority also said in its Short-Term Energy Outlook that OPEC+ had reduced oil supply by some 1.4 million barrels daily this year. However, this has been offset by an increase of 2.4 million bpd by non-OPEC producers, the EIA said.
By Irina Slav for Oilprice.com
Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry. More