EIA Reports Surprise U.S. Crude Build, Fuel Stockpiles Drop
Zacks Investment Research | Mar 27, 2019 10:28PM ET
Oil prices were little changed on Wednesday after the U.S. Energy Department's mixed inventory release. The front month West Texas Intermediate (WTI) crude futures lost 0.9% (or 53 cents) to $59.41 per barrel yesterday. The report showed that crude stockpiles recorded a surpise weekly build on lower refinery consumption but product inventories (gasoline and distillate) experienced hefty draws.
Overall, crude is being supported by the so-called OPEC+ deal that is cutting production by around 1.2 million barrels per day until the end of June. U.S. sanctions against Venezuela and Iran also continue to tighten the commodity’s fundamentals.
The positive sentiments helped push oil prices to their highest level in four months recently, with WTI moving past $60 per barrel. While crude futures have eased back slightly from their multi-month highs, it continues to remain within touching distance of the $60-a-barrel mark.
Analysis of the EIA Data
Crude Oil: The federal government’s EIA report revealed that crude inventories rose by 2.8 million barrels for the week ending Mar 22, following a decrease of 9.6 million barrels in the previous week. The analysts surveyed by S&P Global (NYSE:SPGI) Platts – the leading independent commodities and energy data provider – had expected crude stocks to go down some 2.2 million barrels.
Strong domestic production, a sharp fall in Zacks Investment Research
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