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Crude oil prices moved higher today after the U.S. Energy Information Administration reported an inventory decline of 5.1 million barrels for the week to November 29.
The change compared with a build of 1.23 million barrels for the week, as estimated by the American Petroleum Institute a day earlier. It also compared with an EIA-estimated draw of 1.8 million barrels for the prior week.
The authority also reported builds in fuel inventories for the period.
In gasoline, the EIA estimated an inventory build of 2.4 million barrels for the final week of November, compared with a build of 3.3 million barrels for the previous week.
Gasoline production averaged 9.5 million barrels daily in the reporting period, which compared with 9.7 million barrels daily a week earlier.
In middle distillates, the EIA reported an inventory rise of 3.4 million barrels for the week to November 28. This compared with a modest build of 400,000 barrels for the prior week.
Middle distillate production averaged 5.3 million barrels daily last week, compared with 5.1 million barrels daily a week earlier.
Oil prices, meanwhile, have been on the mend on doubts about the success of the ceasefire between Israel and Hezbollah, the situation in Syria, and the recent surprise martial law declaration in South Korea that only lasted a few hours before the president reversed it.
At the time of writing, Brent crude was trading at $73.64 per barrel, with West Texas Intermediate at $69.75 per barrel, both slightly down from opening.
Demand pessimism, however, continues to weigh on prices, despite the recent stronger-than-expected factory activity data out of China.
“Weaker demand signals from mainland China are raising concerns about demand in the oil market … The world’s largest crude oil importer may struggle to maintain its significant share of global demand by 2025,” Phillip Nova analyst Priyanka Sachdeva told Reuters.
