In a surprising development, domestic crude inventories grew by 6.5 million bbl last week, as revealed by the latest Energy Information Administration data. Total crude inventories now sit at 416.4 million bbl, marking the fourth week of consecutive growth and highest level since late June. The larger-than-expected growth in crude levels jolted the market, which had seen prices steadily rising due to concerns about U.S.-Saudi Arabia relations and upcoming U.S.-imposed sanctions on Iran’s crude exports. With continued worries about global crude supply and demand this fall, more growth in total crude inventories could reduce concerns and push crude prices lower in the coming weeks if the trend continues.
Domestic Crude Inventory Growth Continues