Crude oil prices edged lower today after the U.S. Energy Information Administration (EIA) reported a crude inventory increase of 500,000 barrels for the week ending November 15.
As of this writing, Brent crude was trading at $73.26 per barrel, while West Texas Intermediate (WTI) stood at $69.50 per barrel.
The latest inventory build follows a 2.1-million-barrel increase reported for the previous week. Meanwhile, the American Petroleum Institute (API) had estimated a larger build of 4.75 million barrels for the same week. Despite these crude inventory increases, both last week’s EIA report and this week’s API report highlighted declines in fuel inventories.
For gasoline, the EIA reported a stock build of 2.1 million barrels during the week, with production averaging 9.3 million barrels per day (bpd). This contrasts with the previous week’s inventory draw of 4.4 million barrels, when production averaged a higher 10.3 million bpd.
In middle distillates, the EIA reported a small inventory decline of 100,000 barrels for the week, with production averaging 4.8 million bpd. This compares with the previous week’s larger stock decline of 1.4 million barrels and production levels of 5 million bpd.
Market Factors Shaping Oil Prices
Oil prices remain influenced by competing factors. Geopolitical tensions between Russia and Ukraine pose the risk of further escalation, which could disrupt global supply. At the same time, the latest API data indicating a substantial crude inventory build has weighed on prices.
On the demand side, there are encouraging signs of growing crude oil consumption in China. This uptick is contributing to a slight war premium on prices. However, the premium remains much weaker than it was two years ago when even minor concerns about Russian oil supply disruptions caused significant price spikes.
Supply and Demand Balance in Question
Market perceptions of adequate supply are tempering price reactions. The International Energy Agency (IEA), a key forecaster, has repeatedly pointed to a well-supplied market. Yet, this week, the IEA revised its outlook, suggesting that global inventories might be tighter than previously thought.
Preliminary figures for the fourth quarter show a much larger inventory decline than expected. While the IEA initially estimated a drop of just over 300,000 bpd, early data suggest the actual decline may exceed 1.1 million bpd.
This discrepancy could signal a tighter market in the months ahead, potentially influencing oil prices further. For now, however, crude prices remain under pressure from inventory builds and broader market dynamics.
Related Topics:
- Oil Price Index Live Chart Today ((November 19)
- Today’s WTI Crude Oil Price Chart (November 19)
- Today’s Brent Crude Oil Price Chart (November 19)