According to the latest weekly report from the Energy Information Administration, total domestic crude inventories took a slight step back last week. At 441.5 million bbl, crude inventories fell by 500,000 bbl. When compared to last year at this time, combined inventories across the country are still 5 million bbl higher this year. Not just in the U.S., but globally there is a surplus of crude oil, which has driven gas prices to the lowest levels of the year. Earlier this month, OPEC and Russia announced that beginning in 2019, they will reduce crude production by 1.2 million b/d (for an initial six month period) to help balance global supply. This move could drive crude oil prices up, and in turn drive gas prices higher in the new year.
Domestic Crude Inventories Dip Slightly, Falling For Third Consecutive Week