• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 8 days America should go after China but it should be done in a wise way.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Irina Slav

Irina Slav

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

More Info

Premium Content

Oil Slides on Large Builds in Fuel Inventories

Crude oil prices moved lower today after the U.S. Energy Information Administration estimated a relatively moderate inventory build in crude all and also reported sizeable increases in fuels for the first week of 2024.

In crude, the EIA reported an increase of 1.3 million barrels.

At 432.4 million barrels, inventories are about 2% below the five-year average for this time of the year. The weekly change compared with a decline of 5.5 million barrels for the last week of 2023.

A day before the EIA report was released, the American Petroleum Institute estimated a larger than expected decline in inventories, prompting a gain for oil prices. The effect was reinforced by the EIA’s latest Short-Term Energy Outlook that projected oil demand will exceed supply by 120,000 bpd this year.

In fuels, meanwhile, the authority reported inventory builds for the first week of January.

In gasoline, the EIA estimated an inventory increase of 8 million barrels, which compared with a massive build of 10.9 million barrels for the final week of 2023.

Gasoline production averaged 9.7 million barrels in the first week of January, which compared with 8.8 million bpd for the previous week.

In middle distillates, the EIA estimated an inventory build of 6.5 million barrels for the first week of the new year. This compared with an increase of 10.1 million barrels for the final week of 2023.

Middle distillate production averaged 5.2 million barrels daily, which compared with 5.1 million barrels daily for the previous week.

Oil prices, meanwhile, remain stuck between oversupply perceptions and Middle Eastern supply disruption risk. Saudi Arabia’s announcement of deeper than expected price cuts for February cargos led to a surge in bearish sentiment but short bets were limited by caution with regard to the situation in the Red Sea.

There, Houthi attacks on ships continue despite the ramped-up military presence of U.S. and UK forces. In the latest update from the region U.S. Central Command said it and UK forces had shot down more than 20 drones and missiles released by the Houthis.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News