EIA weekly crude oil inventories -3832K vs +447K expected

The EIA weekly crude oil inventory report revealed a significant decrease of 3832K, well below market expectations of +447K. The prior figure was -1934K, and while this report wasn’t entirely surprising, the substantial increases in gasoline and distillate inventories—7702K and 5594K respectively—raise concerns about future demand. This elevated supply will likely put downward pressure on crude prices. Currently, WTI crude is down to $56.34, touching a low of $55.76 earlier, which is the lowest since December 17, nearing last year's low of $55.00. This persistent downtrend could continue based on current fundamentals. The EIA report is a key indicator of U.S. crude oil inventories, focusing on production, imports, and refinery utilization. Given the wider market context, the large builds in products are expected to weigh heavily on crude demand going forward.