Crude oil futures ended higher, reversing losses earlier in the week after news that U.S. crude inventories fell sharply.
In its weekly Energy Stocks Report, the Energy Information Administration (EIA) reported that crude inventories fell by 7.056 million barrels during the week ending August 12. This was above average pre-report estimates for a storage decline of 275,000 barrels.
On the oil product side, data was mixed with distillate inventories posting a larger-than-expected build of 766,000 barrels versus expectations for 440,000 barrels.
However, gasoline inventories fell by a larger-than-expected 4.642 million barrels versus expectations of a 1.1 million barrel draw last week.
The EIA also reported that U.S. ethanol production fell to 983,000 barrels per day last week versus 1.02 million barrels per day the previous week.
While ethanol production declined, inventories rose to 23.45 million barrels.
Digging further into the EIA report, we see that refinery utilization declined to 93.5% last week, versus 94.3% expected. U.S. gasoline demand rose by 225,000 barrels per day to 9.348 million barrels per day while distillate demand rose by 201,000 barrels per day to 3.925 million barrels per day.
Total U.S. oil inventories, including the strategic petroleum reserve, were at 886.11 million barrels, down from 915.8 million barrels in June, the lowest level since 2004.
Looking at the daily chart for October 2022 Crude Oil Futures (CLV22), we notice prices continue to test the 200-day moving average (red) as buying interest has occurred recently once prices moved below this long term technical indicator.