Proven EIA crude oil inventories have increased by 235 million barrels higher than expected

Announced by the USA Energy Information Agency (EIA Crude Oil Inventories) on Wednesday (October 6) increased by 234.5 million barrels over expected, and the market originally expected a 41.8 million barrels to decrease.

EIA Crude Oil Inventories increase at the same time, Russia said that it would help stabilize the global energy market. Putin said that it may export record natural gas to Europe this year and is ready to discuss new long-term contracts for natural gas delivery to Europe.

This move reversed the soaring prices of crude oil and natural gas for days. As of press time, U.S. WTI crude oil fell more than 1.60% in a day to $77.74 per barrel; Brent crude oil fell 1.62% to $81.22 per barrel; and U.S. natural gas prices fell 8.54% to $5.77/million British heat.

On Tuesday, USA oil and cloth oil both recorded five consecutive positives on the daily line, closing at the highest closing price since 2014. Previously, OPEC+ said that it would not accelerate the increase in production and became the main driving force for crude oil to rise in the near future. In addition, the cold winter is coming, and the demand for heating and power supply has also shifted from natural gas to fuel so EIA Crude Oil Inventories important.

According to the EIA Crude Oil Inventories report, U.S. commercial crude oil stocks excluding strategic reserves increased by 234.5 million barrels to 4.209 billion barrels, an increase of 0.6%; commercial crude oil stocks other than strategic reserves imported 703.5 million barrels per day last week, an increase of 48.3 million barrels per day compared with the previous week, compared with July 16, 2021. The highest in a week.

EIA Crude Oil Inventories affected by the average weekly supply of U.S. crude oil products was 2074.3 million barrels per day, an increase of 16.4% over the same period last year; U.S. crude oil exports decreased by 90.6 million barrels/day to 211.4 million barrels/day last week.

Many refineries along the Gulf Coast of Mexico continued to increase production capacity in the last week of September, and the utilization rate of refineries rose to 88.5% of their capacity. Analyst Lucia Kassai believes that this should be short-lived, because many fuel manufacturers have begun to maintain their equipment. (EIA Crude Oil Inventories effect )

Analyst Sheela Tobben wrote, “Interestingly, domestic crude oil production in the United States increased by 20 thousand barrels per day last week, bringing total production back to the level before Hurricane Ida. Although Shell announced the resumption of operations on the Olympus crude oil platform, some offshore drilling platforms are still in a state of shutdown. Most of this week’s increase in production may come from other places, including shale oil supply. Both situations are abnormal and may be corrected in next week’s report.

there was a large-scale oil spill near the California coast of the Pacific coast on October 2, and about 3000 barrels of crude oil spilled from the offshore drilling platform “Elly”, which is nearly 5 kilometers from the coast of California.

Local government officials said that due to the oil spill, the seawater passage from Santa Ana River Pier to the city dock has been closed.

Jennifer Carey, a spokesman for Huntington Beach in California, USA, said that there was information that the oil spill caused a pipeline pouring 126,000 gallons of crude oil into the waters. At present, the specific cause of the oil spill is still under investigation.

Also, the monthly production report released by the U.S. Energy Information Agency (EIA) on Thursday showed that the daily production of crude oil in the United States increased by 3.1 million barrels to 1,130.7 million barrels in July, up from the 1,127.6 million barrels revised in June EIA Crude Oil Inventories up and down.

Texas and Gulf of Mexico increased production and increased crude oil production. According to the report, the offshore production in the Gulf of Mexico increased by 5.6 million barrels per day in July.