For the fifth consecutive week, domestic crude inventories grew and now sit at a level not seen since the beginning of the driving season in June, according to the Energy Information Administration (EIA). In its latest weekly petroleum status report, EIA revealed that inventories gained 6.3 million bbl to total 422.8 million bbl. Continued growth in domestic crude bbl held in storage will likely cause prices to decline temporarily. However, with pending U.S.-imposed sanctions on Iran’s crude exports set to go into effect on November 5, lower crude prices may be short-lived as global supply tightens – amid robust global crude demand – later this fall.
Domestic Crude Inventories Build Again