Dubai Maritime News

Huge Jump in Crude inventories Caps Oil Prices

news-details

The American Petroleum Institute (API) estimated that crude oil inventories in the United rose by a massive 9.043 million barrels for the week ending January 31. Analysts had expected a much smaller 2.8-million-barrel build.

This adds to the 5.025 million barrel build in U.S. crude oil inventories for the week prior, with gasoline inventories building for multiple weeks as well.

Earlier this week, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by 0.2 million barrels as of February 7. SPR inventories are now at 395.3 million barrels, a figure that is still hundreds of millions shy of the levels in inventory prior to the SPR withdrawal that took place under the Biden Administration.

At 4:09 pm ET, Brent crude was trading up $1.05 (+1.38%) on the day at $76.92—a $0.92 per barrel rise from this time last week. The U.S. benchmark WTI was trading up on the day by $0.91 (+1.26%) at $73.23—a roughly $0.60 increase per barrel over last week’s level.

Gasoline inventories fell in the week ending January 31 by 2.507 million barrels, at least partially countering the previous week’s 5.426-million-barrel increase. As of last week, gasoline inventories are now slightly above the five-year average for this time of year, according to the latest EIA data.

Distillate inventories had another week of decline, dropping another 590,000 barrels in the latest week. In the week prior, distillate inventories fell 6.979 million barrels. Distillate inventories were already about 12% below the five-year average as of the week ending January 31, the latest EIA data shows.

Cushing inventories—the benchmark crude stored and traded at the key delivery point for U.S. futures contracts in Cushing, Oklahoma—rose by 407,000 barrels, according to API data, after rising by 110,000 barrels in the previous week.

Huge Jump in Crude inventories Caps Oil Prices

Comments

Leave Comments

Huge Jump in Crude inventories Caps Oil Prices

Comments

Leave Comments

Subscribe to our mailing list to get the new updates!