The U.S. crude oil inventories are on a downward trend, falling by 3.5 million barrels during the week ending January 30, according to the latest data from the U.S. Energy Information Administration (EIA). This reduction brings commercial stockpiles to 420.3 million barrels, a 4% decrease from the five-year average for this time of year. Analysts had initially predicted a 2 million barrel drop, but the actual figures exceeded expectations. The EIA's data aligns with the API's earlier report, which indicated a significant 11.1 million barrel decrease in crude oil inventories. Crude prices responded positively to this news, with Brent trading at $67.65 per barrel in New York at 9:58 a.m., up $0.32 (+0.48%) for the day, but down $0.45 per barrel week over week. WTI also saw an increase of $0.24 per barrel (+0.38%) in morning trade at $63.45 per barrel. The EIA's data revealed a slight increase in total motor gasoline inventories by 700,000 barrels, following a 200,000 barrel gain in the previous week. Average daily gasoline production decreased to 9.0 million barrels. Middle distillates saw a more significant reduction, with inventories decreasing by 5.6 million barrels and production dropping by 5,000 barrels daily to an average of 4.8 million barrels. The total products supplied, a key indicator of U.S. oil demand, rose to 20.8 million barrels per day over the last four weeks, a 0.9% increase from the previous year. Gasoline demand averaged 8.3 million barrels per day, while distillate four-week averages supplied averaged 4.0 million barrels, a 6.2% decrease year over year. These figures highlight the dynamic nature of the oil market, with ongoing adjustments in supply and demand that impact global energy prices.
