Oil Inventories Rise Less Than Expected, API Reports
Surprising Increase in Crude Stockpiles
The API’s latest report revealed that U.S. crude stockpiles saw a smaller-than-anticipated rise, indicating a rebound in demand after several weeks of unexpectedly high increases. This news comes as a relief to many in the industry.
Market Reaction to the News
Following the report, the U.S. benchmark for crude oil was trading at $78.45 per barrel, a slight increase from the previous day’s close at $78.02 per barrel. This uptick reflects the positive sentiment surrounding the lower-than-expected inventory build-up.
Inventory Figures
The data showed that oil inventories increased by approximately 423,000 barrels in the week ending Mar. 1, significantly lower than the previous week’s build of 8.4 million barrels. Economists had predicted a rise of around 2.6 million barrels, making this update a welcome surprise.
Additionally, gasoline inventories decreased by about 2.8 million barrels, while distillate stockpiles fell by 1.8 million barrels. These declines exceeded expectations, with analysts anticipating drops of 1.4 million barrels and 400,000 barrels, respectively.
Looking Ahead
Market watchers are now eagerly awaiting the official government inventory report scheduled for release on Wednesday, which is anticipated to show a modest increase of approximately 2.6 million barrels in U.S. oil stockpiles for the previous week.
These developments point to a more balanced market outlook and hint at potential stability in the oil sector in the near future. Investors and analysts will be closely monitoring these trends to gauge the industry’s direction in the coming weeks.
