EIA crude inventories rose for three consecutive weeks, and U.S. oil tumbled 3% to give up this week's gains

On Wednesday (November 10), U.
S.
oil futures fell $2.
81, or 3.
3%, to settle at $81.
34 per barrel
.
Brent oil fell $2.
14 to close at $82.
64 a barrel
.
Earlier EIA inventories reported that U.
S.
crude inventories rose by 1.
002 million barrels in the week ended Nov.
5, the third straight week of improvement and the highest level
since August.
At the same time, US President Joe Biden said that in the context of a generally sharp rise in inflation, the government is looking for ways to reduce energy prices, triggering a sharp decline in oil prices
.

The EIA inventory report showed that refined oil inventories fell by 2.
613 million barrels and gasoline inventories by 1.
555 million barrels
in the week ended Nov.
5.
The four-week average supply of U.
S.
crude products was 20.
238 million b/d, up 6.
1%
from a year earlier.
Financial network (blog, Weibo) station Forexlive reported on EIA that oil prices were slightly lower
after the release of the U.
S.
EIA crude oil report.
Following today's CPI report, the volatility of the US dollar rebounded oil prices
.
The risk is that the Fed may raise interest rates early, which will dampen economic growth and further hurt oil demand
.

Traders are also continuing to evaluate the Biden administration's plans to
calm rising energy prices.
U.
S.
President Joe Biden said earlier that he had asked the White House National Economic Council (NEC) to work to lower energy prices, and asked the Federal Trade Commission (FTC) to crack down on market manipulation in the energy industry to reverse inflation
more vigorously.
Bob Yawger, head of Mizuho Energy Futures, said: "This statement caused the market to plunge
.
”

Rebecca Babin, a senior energy trader at CIBC Private Wealth Management, said the market appears to be groping
in the dark about how the U.
S.
government is responding to rising energy prices.
A stronger dollar coupled with less bullish inventory data also contributed to the price decline
.

U.
S.
President Joe Biden is under increasing pressure from fellow Democrats to take measures, including a possible ban on oil exports and the release of crude oil from the National Strategic Reserve, to address rising gasoline prices
.

In a letter this week, 11 Democratic senators, including several known for their focus on climate change, urged Biden to act quickly to address the nation's highest average gasoline price per gallon since 2014
.
They argue that households and small businesses are currently "overburdened" and have urged the release of oil from the national strategic reserve or even a more aggressive ban on U.
S.
crude exports
.

Bob McNally, president of consultancy Rapidan Energy Group and a former White House official, said the most likely course of action is to release oil
from the Strategic Petroleum Reserve (SPR).
From all accounts, the government attaches the most importance to the release of SPR, which is also what
the market expects.
I still believe the market is looking forward to the release of SPR later this week, which I think is the most likely option
.