Crude oil prices dropped slightly as the Energy Information Administration reported a 3.6 million barrel increase in inventory for the week ending November 10th. Additionally, gas inventory figures also decreased and the EIA estimated a 1.4 million barrel drawdown in middle distillate stock levels. Refineries were responsible for processing 15.4 million barrels of crude daily, a decrease from previous levels, while operating at 86.1% capacity. Further updates are related to the fact that imports averaged 6.4 million barrels daily within the last week.
The EIA’s latest report outlines a modest crude oil inventory increase of fewer than 1 million barrels, as well as a minor gasoline inventory rise of 100,000 barrels and a decrease in middle distillate stocks of 800,000 barrels for the week ending October 27th. Prices for oil have stabilized as concerns about potential supply disruptions in the Middle East have diminished. Moreover, the International Energy Agency reported that the oil market is expected to be less firmly pressed for supply than initially expected in the fourth quarter due to more substantial global oil production.
The IEA also projected a growth in oil demand for the rest of this year and next, despite a general slowdown in economic growth worldwide. Taking into account that the market balance will be sensitive to persisted economic and geopolitical risks, the IEA noted that further fluctuations should be expected.
