Crude oil prices fell today after the Energy Information Administration reported a rise in crude inventories of 4.5 million barrels in the week to July 29.
This compares to an almost identically sized draw from the previous week. US crude inventories are at 426.6 million barrels, 7% below the five-year average for this time of year.
The American Petroleum Institute yesterday reported an unexpected build in crude inventories of more than 2 million barrels, while analysts had expected a modest draw of less than 500,000 barrels for the week to July 29.
In fuels, the EIA estimated a mixed picture.
Gasoline inventories added a modest 200,000 barrels in the week to July 29, with production averaging 9.3 million barrels a day.
That compared with a draw of 3.3 million barrels and production of 9.7 million barrels a day the previous week.
In middle distillates, the EIA estimated an inventory decline of 2.4 million barrels for the week to July 29, with production averaging 4.9 million barrels per day.
That compares with an inventory draw of 800,000 barrels the previous week and average production of 5 million barrels a day.
Refineries processed 15.9 million bpd of crude last week, operating at 91 percent of capacity. That compares with 16 million bpd the previous week, with refineries operating at 92.2 percent of capacity.
The middle distillate supply situation has tightened, with US exports hitting record highs as European buyers shun Russian diesel and other distillate fuels. That, however, is causing concern for the domestic market, where demand will increase in the coming weeks as the harvest season begins in the Midwest.
Meanwhile, oil prices have been hit by recession concerns for the United States. Traders are also looking ahead to today’s OPEC+ meeting, where the cartel will say whether or not it will increase production in September.
At the time of writing, Brent crude was trading at $100.40 a barrel, with West Texas Intermediate at $94.24 a barrel, both below the open.
By Irina Slav for Oilprice.com
More top reads from Oilprice.com: