USA: Crude Oil Reserves Increase More Than Expected

Around 3 p.m., the price of a barrel of Brent from the North Sea for delivery in December, lost 1.84% to 84.79 dollars, while in New York the barrel of West Texas Intermediate (WTI) for the month of December, dropped 1.69% to 83.22 dollars.

Commercial crude oil reserves in the United States rose more than analysts expected last week while gasoline inventories declined as expected, figures released by the U.S. News Agency on Wednesday showed. energy (EIA).

Crude inventories climbed 4.3 million barrels during the week ended Oct. 22 to 430.8 million barrels. Analysts expected crude inventories to rise 2 million barrels. On the other hand, gasoline reserves fell by 2 million barrels, close to the reduction of 2.2 million barrels predicted on average by analysts.

This increase in crude reserves was pushing down oil prices, when they were already in decline since the market was already expecting inventories to swell.

Around 3:00 p.m. GMT, in London, the price of a barrel of Brent from the North Sea for delivery in December, lost 1.84% to 84.79 dollars, while in New York the barrel of West Texas Intermediate (WTI) for the month of December, dropped 1.69% to 83.22 dollars.

The day before, the American Petroleum Institute (API), the federation which brings together professionals in the petroleum sector in the country, estimated that stocks would show an increase of 2.3 million barrels for the past week.

The surge in crude reserves, usually interpreted as slowing demand, was offset by the fact that more oil was taken from strategic reserves which declined by more than a million barrels to 614.2 million.

Additionally, in Cushing, Oklahoma, home to gigantic vats housing New York-listed WTI barrels, inventories fell from 31.2 million barrels to 27.3 MB, the lowest level since October. 2018.

The overall consumption of petroleum products in the United States decreased from 2 million barrels per day (mb / d) to 19.832 mb / d compared to last week. Black gold production remained stable at 11.3 mb / d.

Refinery capacity utilization edged up to 85.1% with 15 million barrels processed on average per day, still well below normal.

Exports edged down 273,000 b / d to 2.78 mb / d while imports increased sharply by 430,000 barrels to 6.25 mb / d.

“A rebound in imports has led to an increase in crude inventories, despite continued strength in exports,” said Matt Smith, head of petroleum analysis for commodities data provider Kpler.

“Even though the surge in crude reserves can be seen as bearish for the market, another significant drop in stocks held at Cushing – which fell to 27 million barrels, the lowest level since 2019 – is likely to limit the lower prices, ”assured the analyst.

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