Crude oil prices climbed today following a report from the U.S. Energy Information Administration (EIA) showing a decline in inventories by 2.2 million barrels for the week ending October 11. This followed a sharp rise of 5.8 million barrels in the previous week, which had weighed on prices.
Just one day before the EIA’s release, the American Petroleum Institute (API) also reported a surprise drop in crude oil inventories. According to the API, stocks fell by 1.58 million barrels in the same week, helping boost oil prices.
In addition to crude oil, the EIA reported inventory reductions for gasoline and middle distillates. Gasoline inventories fell by 2.2 million barrels, with average daily production at 9.3 million barrels. The previous week had seen a larger decline of 6.3 million barrels, with higher production averaging 10.2 million barrels daily.
For middle distillates, which include diesel and heating oil, the EIA estimated a drop of 3.5 million barrels, with production averaging 4.8 million barrels per day. This compared to a decline of 3.1 million barrels the previous week, when production averaged 5 million barrels daily.
Earlier this week, oil prices took a hit as traders reacted to new reports from OPEC and the International Energy Agency (IEA), both of which revised their global oil demand forecasts downward. OPEC now expects demand to grow by 1.95 million barrels per day (bpd) this year, down from an earlier forecast of 2.25 million bpd. The IEA is predicting demand to increase by less than 1 million bpd for the year.
Traders are also keeping a close watch on China’s economic plans, as the government is expected to announce further stimulus measures. Additionally, tensions in the Middle East remain a concern, with markets awaiting Israel’s response to Iran’s recent missile attack, which had caused a spike in oil prices earlier in the month.
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