Oil price remain high despite mixed inventory report

U.S. commercial crude oil inventories fell by 1.962 million barrels, according to the latest EIA data. This draw surpassed the consensus forecast of a 0.85 million barrel decline. The previous week saw a decrease of 0.959 million barrels. However, it's worth noting that some market forecasts anticipated a larger draw of around 3.5 million barrels, while the American Petroleum Institute (API) reported a decline of 2.4 million barrels earlier in the week.

Cushing Crude Stocks: Build Contrasts with Prior Week's Draw.

Crude stocks at the Cushing, Oklahoma, delivery hub increased by 0.765 million barrels. This marks a significant shift from the previous week's draw of 2.502 million barrels. No formal forecast was available for Cushing inventories.

Distillate Inventories: Substantial Build Far Exceeds Expectations.

Distillate inventories, which include diesel and heating oil, saw a substantial build of 3.077 million barrels, significantly exceeding the forecast of 1.34 million barrels. The previous week's figure stood at 6.071 million barrels.

Gasoline Inventories: Significant Build Well Above Forecasts.

Gasoline inventories also registered a significant build, rising by 5.852 million barrels, well above the anticipated 2.6 million barrel increase. The previous week's reading was 6.330 million barrels.

Market Reaction: Crude Recovers After Initial Dip Amid Mixed Inventory Report.

The EIA's inventory report presents a mixed picture. While crude oil inventories did decline, the magnitude of the draw varied considerably against different forecasts, falling short of some projections while exceeding others. Furthermore, the draw was smaller than the one reported by the API. Meanwhile, inventories of refined products experienced builds, with distillate stocks rising sharply against some expectations for a decline.

In response to the data, crude oil prices initially dipped. However, those losses have since been erased, with West Texas Intermediate (WTI) crude is testing new daily high above $79 per barrel