SunSirs: EIA Report Shows Larger-than-Expected Crude Oil Inventory Increase

On Thursday, November 13th, the U.S. Energy Information Administration (EIA) released its inventory report, showing that U.S. crude oil inventories increased last week, while gasoline and distillate fuel inventories declined. For the week ending November 7th, U.S. commercial crude oil inventories increased by 6.4 million barrels to 427.58 million barrels, compared to market expectations of a 1.96 million barrel increase. Gasoline inventories decreased by 945,000 barrels to 205.1 million barrels, compared to market expectations of a 1.89 million barrel decrease. Distillate fuel inventories, including diesel and heating oil, decreased by 637,000 barrels to 110.9 million barrels, compared to market expectations of a 2.03 million barrel decrease.

The EIA inventory report showed that crude oil inventories increased by 6.4 million barrels last week, far exceeding market expectations of 1.96 million barrels, indicating a worsening oversupply and putting significant downward pressure on crude oil spot prices. While gasoline and distillate fuel inventories decreased, the declines were smaller than expected (gasoline decreased by 945,000 barrels vs. expected 1.89 million barrels; distillate fuel inventories decreased by 637,000 barrels vs. expected 2.03 million barrels), indicating limited demand support, insufficient to offset the negative impact of the large increase in crude oil inventories. The overall report highlights a market oversupply, and spot prices are expected to face downward pressure.

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