Mixed EIA Report Sends Oil Prices Lower
Crude oil prices moved lower today after the U.S. Energy Information Administration reported an inventory dip of 1 million barrels for the week to January 17. In fuels, the EIA estimated mixed changes.
The change in crude inventories compared with a draw of 2 million barrels for the previous week, which also saw another round of sizable builds in fuels.
In gasoline, the authority estimated a build of 2.3 million barrels for the week to January 17, with production at an average 9.2 million barrels daily. This compared with an inventory rise of 5.9 million barrels for the previous week, and production of an average 9.3 million barrels daily.
In middle distillates, the EIA reported an inventory fall of 3.1 million barrels for last week, with production at an average 4.7 million barrels daily. This compared with a stock build of 3.1 million barrels for the previous week, when production stood at an average 5.2 million barrels daily.
Despite these inventory builds, all stocks—both crude and fuels—remain below the five-year average for this time of the year, potentially contributing to oil price strength. However, prices have taken a dip this week, as the market processes the implications of a Trump presidency.
At the time of writing, Brent crude was trading at $78.29 per barrel, with West Texas Intermediate at $74.61 per barrel, both down from opening.
“Oil markets have given back some recent gains due to mixed drivers,” Priyanka Sachdeva, senior market analyst at Phillip Nova, told Reuters. “Key factors include expectations of increased U.S. production under President Trump’s pro-drilling policies and easing geopolitical stress in Gaza, lifting fears of further escalation in supply disruption from key producing regions.”
“Oil’s 2025 uptrend reflects unsustainable bullish momentum, primarily fueled by transient factors: winter demand, a short-term Chinese export boost ahead of US tariff risks and hedging against upside risks driven by U.S. sanctions on Russian oil,” Razan Hilal, Forex.com market analyst, told Bloomberg.