Crude oil prices rose today following a report from the U.S. Energy Information Administration (EIA), which showed a decrease in crude inventories by 1.8 million barrels for the week ending November 22.
This draw contrasted with the American Petroleum Institute’s (API) earlier estimate of a 5.9 million-barrel decrease. It also followed a modest increase in inventory of 500,000 barrels the previous week. The EIA’s report partially confirmed the API’s estimate, which could push prices higher. However, changes in fuel inventories may counteract this effect.
In terms of fuel stocks, the EIA reported a 3.3 million-barrel increase in gasoline inventories for the week ending November 22. Gasoline production averaged 9.7 million barrels per day, up from 9.3 million bpd the previous week. In comparison, gasoline stocks grew by 2.1 million barrels the week before.
Middle distillate stocks, including diesel, increased by 400,000 barrels during the same period. Production of middle distillates averaged 5.1 million barrels daily, higher than the previous week’s 4.8 million barrels per day. The prior week had seen a slight draw of 100,000 barrels in this category.
Refineries processed 16.3 million barrels daily, slightly up from the previous week’s 16.2 million bpd. Oil imports averaged 6.1 million barrels daily, down from 7.7 million barrels per day in the week prior.
Despite the recent inventory data, oil prices continue to be pressured by concerns over weak demand and abundant supply. This comes even as OPEC+ is expected to extend its production cuts into 2025 at its upcoming meeting on Sunday.
Meanwhile, a ceasefire between Israel and Hezbollah initially helped keep prices in check. However, renewed Israeli attacks on Lebanon shortly after the announcement of the ceasefire could disrupt hopes of de-escalation in the Middle East.
In other news, Canadian oil producers have expressed concern over U.S. president-elect Donald Trump’s plans for tariffs on all imports. As Canada is the largest oil exporter to the U.S., these tariffs could lead to higher gasoline prices at American pumps.
Related Topics:
- WTI Crude Oil Close to $71 Due to Geopolitical Risks and Increased Demand
- Oil Prices Dip but Remain Near 2-Week Highs Amid Russia-Iran Tensions
- Oil Prices Drop Due to Potential Mid-East Peace Agreement