Crude Oil Prices And Production Change After Inventory Draw

Crude oil prices saw a boost following a report from the U.S. Energy Information Administration (EIA) estimating an inventory draw of 1.7 million barrels for the week ending 3 March 2023, compared to a build of 1.2 million barrels in the previous week.

When it comes to crude oil inventories, they remain 7% above the five-year seasonal average, at 478.5 million barrels.

Factors Affecting Crude Oil Inventory

The EIA attributed the recent substantial inventory builds to production underreporting and crude oil blending. To tackle this issue, the agency stated that it would change the way it accounts for blended crude and amend its surveys.

Gasoline Stocks

The EIA also reported a draw in gasoline stocks of 1.1 million barrels, compared to a decline of 900,000 barrels in the previous week. Gasoline production averaged 9.6 million barrels daily last week, compared to 9.7 million barrels daily the week before.

Insight

The EIA forecasted that U.S. crude oil production would increase to 12.44 million bpd in 2023, rising by 590,000 bpd. However, the agency predicted weaker production growth in 2024, at 190,000 bpd to 12.63 million bpd.

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