Unexpected Drop In US Oil Stocks Defies Analyst Predictions

(MENAFN- The Rio Times) The US oil market witnessed a surprising shift last week. Crude oil inventories decreased by 2.19 million barrels, according to the Department of Energy (DoE ).

This decline contradicted analysts' expectations of a 1.9 million barrel increase. The unexpected reduction brought US oil stocks to 420.55 million barrels.

Gasoline inventories also fell by 2.20 million barrels, reaching 212.697 million barrels. This drop exceeded the projected 2 million barrel decrease.

Distillate stocks experienced a more significant decline than anticipated. They decreased by 3.53 million barrels to 114.979 million barrels. Analysts had predicted a smaller reduction of 2.2 million barrels.



Cushing, Oklahoma, a key distribution center, saw a slight increase in oil stocks. Inventories rose by 108,000 barrels to 25.022 million barrels.

The US strategic petroleum reserve grew by 952,000 barrels to 383.882 million barrels. American refineries increased their utilization rate to 87.7%.

This surpassed both the previous week's 86.7% and the forecasted 86.3%. The higher utilization suggests increased demand for refined products.

Following the data release, oil prices showed minimal movement. Brent crude for December delivery dipped 0.04% to $74.18 per barrel.

WTI crude for November delivery rose slightly by 0.13% to $70.40 per barrel. These inventory changes reflect the dynamic nature of oil markets.

They highlight the challenges in predicting short-term supply and demand fluctuations. The data underscores the importance of adaptable energy policies and diverse supply sources.

MENAFN17102024007421016031ID1108791807