The American Petroleum Institute (API) on Tuesday announced another weekly increase in crude oil reserves. This time, the rise is very large – 5.213 million barrels for the week ending October 8, as US crude oil inventories are 66 million barrels below the start of the year.
Analysts had expected 140,000 barrels to rise over the week.
Last week, API reported an unexpected 951,000 barrel increase in oil reserves, compared with analysts’ forecasts of 300,000 barrels.
On Wednesday ahead of the data release, oil prices were relatively stable, but the price of WTI crude oil still exceeds $ 80 a barrel, while Brent crude is trading at over $ 83. WTI and Brent crude prices fell 0.10% and 0.17%, respectively, at 15:30 EST.
At 3:35 pm ET, WTI crude was trading at $ 80.55, up more than $ 1 for the week. Brent crude was traded at $ 83.28 per barrel.
According to API data, this year, US oil inventories have dropped by almost 66 million barrels. And since the beginning of 2020, they have produced about 9 million barrels.
US oil production for the week ending October 1, the latest week for which data is available, rose 200,000 barrels per day to 11.3 million barrels per day and is now just 200,000 below pre-Hurricane Ida levels.
API reported a reduction in gasoline inventories by 4.575 million barrels for the week ending October 8, up from 3.682 million barrels in the previous week.
Distillate stocks decreased by 2.707 barrels for the week, compared with an increase of 345,000 barrels last week.
Cushing’s stocks have shown a draw this week, adding 2,275 million barrels to total reserves after an increase of 1.999 million barrels last week.
Julianne Geiger for Oilprice.com
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