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Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

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Oil Steady as EIA Confirms Crude, Gasoline Draws

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The Energy Information Administration reported an estimated inventory draw of 1.5 million barrels for the week to March 8. Gasoline stocks also declined while middle distillates inched up.

The figures compared with a crude oil inventory build of 1.4 million barrels for the previous week, with substantial declines in both gasoline and middle distillates for that week.

A day before the EIA released its report, the American Petroleum Institute reported inventory draws across both crude and fuels, pushing oil prices higher on Tuesday. Benchmarks continued higher on Wednesday.

In gasoline, the EIA estimated an inventory draw of 5.7 million barrels for the week to March 8, which compared with a decline of some 4 million barrels for the previous week.

Gasoline production last week averaged 9.9 million barrels daily, which compared with 9.6 million barrels daily for the previous week.

In middle distillates, the EIA reported an inventory increase of 900,000 barrels for the week to March 8, with production averaging 4.6 million bpd.

These changes compared with an inventory draw of 4.1 million barrels and production averaging 4.3 million barrels daily for the previous week.

A day before it released its weekly oil inventory report, the EIA revised its U.S. oil production outlook in its Short-Term Energy Outlook, now expecting stronger growth than earlier. The EIA now expects production to add 260,000 bpd this year, for a total of 13.19 million barrels daily. That’s up from a modest 170,000 bpd growth projection earlier.

This should have been bearish for prices, but the EIA also said in its STEO that it saw OPEC production remain constrained while demand strengthened, which would lead to a tighter market beginning as soon as the second quarter of the year.

Following this report—and the API’s inventory estimate—oil futures were around 2% higher on the day, boosted additionally by expectations of rate cuts by the Fed come summer. These expectations are not based on signals from Fed officials who remain cautious about any rate-cutting commitments especially as inflation ticked higher in February.

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By Irina Slav for Oilprice.com

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Leave a comment
  • GerryRunolfson on March 13 2024 said:
    Thanks for clarifying that the EIA is putting out false information to please the lying Biden administration. This was brought to your attention several months ago but you kept showing their bogus figures.
    Regards Gerry Runolfson
  • George Doolittle on March 13 2024 said:
    If everything is going up in price where is the demand for anything? Already pure BEV price collapse now well underway by way of specific example. Seems like the oil *GOONS* are their own worst enemy...like coal back in the day. Of course what is oil even used for as relates to the truly vast US economy now today anymore? Seems like a very small matter now compared to dirt cheap natural gas anyways. Coal is very much on sale now as well #irony which taken together has been great news for $ge General Electric. Long $ibm international business machines strong buy

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