This week’s draw more than twice expectations
Crude oil inventories are, at long last, below record levels once again, according to the latest inventory report released by the EIA.
The EIA reported an inventory draw of 7,208 MBBL this week, the fourth straight week of significant inventory decreases. According to Bloomberg, analysts expected a draw of 3,125 MBBL, less than half of the actual value.
The draw was enough to push inventories below 2016 levels, marking the first time this year that inventories are not setting record highs. The current crude oil stock is 483,415 MBBL, compared to 490,501 MBBL at this point last year. However, current inventories are still significantly above the five year average of 335,699 MBBL.
Traders have been buoyed by this news, along with the results of the recent OPEC Joint Ministerial Monitoring Committee meeting and a perceived slowdown in U.S. shale activity. According to Bloomberg, WTI jumped by 1.73% to $48.72/bbl in today’s trading. Brent prices increased by a slightly smaller margin, rising 1.49% to $50.95/bbl. Since Friday, WTI prices have grown by 6.45% as the market digests recent activity.
