Crude oil inventory in the United States decreased by 900,000 barrels to 409.8 million barrels in the week ending October 30, 2023. This decrease reflects the demand and supply situation in the U.S. oil market, with the current inventory being 4 percent lower than the five-year average for this time of year.
Overall Decrease in Commercial Oil Inventories
According to new data from the U.S. Energy Information Administration (EIA), total commercial oil inventories decreased by 8.2 million barrels during this period. This information was released following the American Petroleum Institute (API) report, which indicated a decrease of 5.267 million barrels in inventories during the same period. These reductions have had a direct impact on crude oil prices in global markets.
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Changes in Gasoline and Diesel Demand
In recent weeks, gasoline demand averaged 8.6 million barrels per day. Additionally, diesel inventories have decreased by 3.6 million barrels, with production averaging 5.2 million barrels per day. These figures indicate an 8.7 percent increase in diesel demand compared to last year.
Analysts predict that the increase in gasoline and diesel demand could gradually lead to higher global oil prices. The average daily supply of total petroleum products, as a measure of oil demand in the United States, has reached 21.2 million barrels per day over the past four weeks, reflecting a 4.2 percent increase compared to last year.
Given these developments, the oil market is in a position that could be influenced by various factors, including producer policies and global conditions. The price of Brent crude oil has currently reached $100.71 per barrel, showing a decrease of 2.79 percent compared to the previous day. Additionally, the price of West Texas Intermediate (WTI) crude oil has decreased to $93.30 per barrel, which is nearly $9 less than the same time last week.
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