Oil Prices Rise as the EIA Reports a Decline in Crude and Product Inventories

Crude oil inventories in the United States saw a decrease of 3.3 million barrels during the week ending March 21, according to new data from the U.S. Energy Information Administration released on Wednesday.

Crude oil prices were trading up prior to the crude data release by the U.S. Energy Information Administration after the American Petroleum Institute (API) reported on Tuesday a draw of 4.6 million barrels in U.S. crude oil inventories amid a strong gasoline draw. The Brent benchmark was trading up 0.88% at 9:39 a.m. ET at $73.66—a roughly $3 per barrel increase over this same time last week. The WTI benchmark, meanwhile, was trading up 0.84% at $69.58—just shy of a $3 per barrel rise over last week’s levels.

For total motor gasoline, the EIA estimated that inventories decreased 1.4 million barrels for the week to March 21, with production averaging 9.2 million barrels daily. This compares with an inventory decrease of 500,000 barrels for the previous week and an average daily production of 9.6 million barrels.

For middle distillates, the EIA estimated another inventory decrease, this time of 400,000 barrels, with production decreasing to an average of 4.5 million barrels daily. This compares to an inventory dip of 2.8 million barrels in the week prior, when production stood at an average of 4.6 million barrels daily. Distillate inventories are now 7% below the five-year average for this time of year.

Total products supplied over the last four weeks were down week over week, averaging 20.2 million barrels per day—a 0.5% increase over this time last year. Distillate products supplied over the last four weeks are up 1.8% compared to this time last year, while gasoline products supplied were down 0.2% from same period last year.