By Irina Slav – Nov 06, 2024, 9:37 AM CST
Crude oil prices were under pressure this morning after the U.S. Energy Information Administration reported an inventory build of 2.1 million barrels for the week to November 1.
This compared with a modest inventory draw of half a million barrels for the previous week and a crude oil inventory build for the week to November 1 as estimated by the American Petroleum Institute on Tuesday.
At the time of writing, Brent crude was trading at $75.07 a barrel, and WTI was trading at $71.70 a barrel, both down from opening, as Republican candidate Donald Trump won the U.S. presidential vote.
The API also reported estimated fuel inventory draws for the week to November 1, and the EIA reported builds in gasoline and middle distillates.
In gasoline, the authority estimated an inventory increase of 400,000 barrels for last week, with production averaging 9.7 million barrels daily. This compared with an inventory draw of 2.7 million barrels for the previous week, when production averaged 9.7 million barrels daily as welly.
In middle distillates, the EIA reported an inventory build of 2.9 million barrels for the week to November 1, with production at 5.1 million barrels daily. These figures compared with an inventory drop of 1 million barrels for the previous week, when production averaged 4.9 million barrels daily.
The EIA also said imports last week stood at 6.2 million barrels daily, while refinery run rates averaged 16.3 million barrels daily. The numbers compared with an import rate of 6 million barrels daily for the previous week and a refinery run rate of an average 16.1 million barrels daily.
Oil prices were depressed, meanwhile, pushed lower by the API’s inventory report and early voting results from the U.S. election that suggested the Republicans were gaining ground. The data pushed the U.S. dollar higher, affecting oil prices negatively.
Geopolitical concerns also played a part, but in the opposite direction. With Donald Trump winning the presidency, tensions between the United States and Iran are almost certain to intensify, potentially jeopardizing oil supply from the Middle East.
By Irina Slav for Oilprice.com
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