The Energy Information Administration (EIA) released a report on Thursday, revealing a significant increase in U.S. commercial crude inventories for the week ended Oct. 6. Analysts had predicted a much smaller rise, but the actual data showed an uptick of 10.2 million barrels. This significant difference surprised industry experts who were anticipating a more modest increase of 200,000 barrels.
In addition to the rise in crude inventories, the EIA report also disclosed declines in gasoline and distillate supplies. Gasoline stocks saw a drop of 1.3 million barrels, while distillate supplies experienced a decrease of 1.8 million barrels. Analysts’ forecasts, on the other hand, predicted declines of 1.1 million barrels for gasoline and the same 1.8 million barrels for distillates.
Crude stocks at the Cushing, Oklahoma delivery hub followed a different trend, falling by 300,000 barrels for the week, according to the EIA. This unexpected change in inventory levels added another layer of complexity to the market dynamics.
As a result of these developments, oil futures prices experienced an upward shift. November West Texas Intermediate crude (CLX23) saw a significant rise of $1.45 or 1.7%, reaching $84.94 per barrel on the New York Mercantile Exchange. Prior to the release of the supply data, prices were trading at $84.67.
Overall, these unexpected inventory numbers have left industry analysts reassessing their predictions and closely monitoring market trends. The continual fluctuations in supply and demand dynamics highlight the importance of staying informed and adapting strategies accordingly.