Crude Oil Obtained a Boost from Inventory Data, rather than More “Customary” Geopolitics

Crude oil prices rose today to $72.12/bbl for the U.S. WTI blend after the U.S. Energy Information Administration reported that inventories were recorded to have fallen by 6.9 million barrels in the week ended December 22.

In comparison, crude oil inventories increased significantly last week by 2.9 million barrels. A day earlier, API estimated that crude oil inventories rose by 1.84 million barrels in the week ended December 22. Storage capacity at the Cushing, Oklahoma, crude storage facility, nevertheless, increased by a weaker-than-expected 1.5 million barrels in the week ended Dec. 22, to nearly 34 million barrels. However, this is still well below the 2023 peak of 43 MMbbl in the week ended June 23, which was the tenth consecutive week of gains.

That compares with a 1.5 million barrel build in inventories last week, when distillate production averaged 4.9 million barrels per day. Oil prices have remained relatively steady amid signs of easing geopolitical tensions, despite reports that oil tankers off the coast of India were attacked by drones that the United States said were launched from Iran.