Advertisements

Oil Prices Decline Even with Major Decrease in Crude Oil Inventories

by Krystal

Crude oil prices fell today after the Energy Information Administration (EIA) reported a decline of 4.5 million barrels in inventories for the week ending September 20. This drop contrasts with a smaller reduction of 1.6 million barrels the previous week, which followed a slight increase of less than 1 million barrels that had pressured prices.

In addition to the crude oil inventory changes, fuel stocks also saw reductions. Gasoline inventories decreased by 1.5 million barrels during the reporting period, while production averaged 9.8 million barrels per day, up from a minor increase of about 100,000 barrels the week before, when production averaged 9.7 million barrels daily.

Advertisements

For middle distillates, the EIA estimated a draw of 2.2 million barrels, with production averaging 4.9 million barrels per day. This follows a previous week that saw a 100,000-barrel increase in inventories and production of 5.1 million barrels daily.

Advertisements

Oil prices began to decline earlier today as initial excitement over Chinese economic stimulus faded. This left behind ongoing concerns about demand in the world’s largest oil importer. Following the stimulus announcement, benchmark prices rose nearly 2%, but those gains quickly dissipated.

Advertisements

In contrast, the American Petroleum Institute’s (API) weekly inventory report provided some positive news. The API estimated that crude oil inventories fell more than expected, by 4.34 million barrels for the week ending September 20. Prices also received temporary support from a storm approaching the Gulf of Mexico, which could disrupt normal operations in the area. Some crude and natural gas production has already been halted in anticipation of the storm.

Advertisements

Additionally, OPEC‘s latest report, the World Oil Outlook, offered an optimistic view for the market. The cartel raised its long-term oil demand forecast, projecting it will exceed 120 million barrels per day by 2050. This growth is primarily driven by strong demand from non-OECD countries, which are expected to account for most of the increase, according to OPEC.

You Might Be Interested In

Advertisements
Advertisements

You may also like

oftrb logo

Oftrb.com is a comprehensive energy portal, the main columns include crude oil prices, energy categories, EIA, OPEC, crude oil news, basic knowledge of crude oil, etc.

【Contact us: [email protected]

© 2023 Copyright oftrb.com – Crude Oil Market Quotes, Price Chart live & News [[email protected]]