Crude inventories fall by 3.7 million barrels

U.S. crude oil imports fell by 729,000 barrels to an average of 6.2 million barrels per day. Over the past four weeks, crude oil imports have averaged 6.8 million barrels per day.

Strategic Petroleum Reserves increased from 375.1 million barrels to 375.8 million barrels as the United States continued to purchase oil for reserves. Oil prices have recently fallen to yearly lows, so the United States will likely continue to replenish its reserves.

Domestic oil production rose from 13.3 million barrels per day to 13.4 million barrels per day, a surprising development as oil prices have fallen sharply in recent weeks.

WTI oil tested session highs as traders reacted to the EIA report. Interestingly, traders are not worried about the rise in US domestic oil production. Overall, oil markets have calmed down after the recent sell-off and traders have started buying the dip. Currently, WTI oil is trying to stabilize above the $75.00 level.

Brent crude climbed above the $78.00 level amid a broad rebound in oil markets.

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