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US oil prices drop as inventory builds, production hits record high

EditorNikhilesh Pawar
Published 17/11/2023, 17:24
© Reuters.
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WASHINGTON - US West Texas Intermediate (WTI) crude prices tumbled to $72.90, as the latest data revealed a significant inventory build coupled with a record surge in crude production. The Energy Information Administration (EIA) reported on Thursday that for the week ending November 10th, crude production reached an all-time high of 13.2 million barrels per day.

The stockpile increase of 3.6 million barrels pushed total domestic stocks to 439.4 million barrels, slightly above last year's figures but still below the five-year average. Notably, the Cushing terminal saw supplies jump by 1.9 million barrels, marking the largest increment since September, and the national crude supply cover edged up to 28.8 days.

In contrast to the swelling crude inventories, gasoline supplies contracted by 1.5 million barrels despite robust demand, positioning them above last year's levels yet under the five-year norm at 215.7 million barrels. Distillate stockpiles continued their seven-week decline, falling by another 1.4 million barrels, now sitting just below last year's level and significantly lower than the five-year average.

The report also highlighted refinery rates reaching an 86.1% utilization rate. This operational uptick comes as energy companies such as Delek US Holdings (NYSE: NYSE:DK), EOG Resources (NYSE: NYSE:EOG), and Civitas Resources (NYSE: CIVI) are gaining attention from investors, each having received a Zacks Rank #2 recommendation, indicating favorable investment prospects amid the current market dynamics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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