Crude Stockpiles Drop as Oil Prices Rebound

The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell 4.49 million barrels in the week ending May 2, after analysts had estimated a 2.5-million-barrel draw. The API reported a 3.76 million barrel inventory hike in the prior week.

So far this year, crude oil inventories are up more than 18 million barrels, according to Oilprice calculations of API data.

Earlier this week, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) climbed 600,000 barrels to 399.1 million barrels in the week ending May 2. Inventory levels in the SPR are hundreds of millions shy of the levels in inventory prior to the SPR withdrawal that took place under the Biden Administration.

At 2:50 pm ET, Brent crude was trading up $1.83 (+3.04%) on the day, landing at $62.06—a $2 per barrel dip from this time last week after OPEC’s announced production plans over the weekend sending the international benchmark to the lowest price in years.

WTI was also trading up on the day, by $1.86 (+3.26%) at $58.99—a $1.20 per barrel decrease over last week’s level.

Gasoline inventories fell in the week ending May 2, by 1.97 million barrels, after falling by 3.14 million barrels in the week prior. As of last week, gasoline inventories are now 4% below the five-year average for this time of year, according to the latest EIA data.

Distillate inventories were up this week 2.24 million barrels in the latest week. In the week prior, distillate inventories fell by 2.52 million barrels. Distillate inventories were already about 13% below the five-year average as of the week ending April 25, the latest EIA data shows.

Cushing inventories—the benchmark crude stored and traded at the key delivery point for U.S. futures contracts in Cushing, Oklahoma—fell by 854,000 barrels, the API data showed, after last week’s 674,000 barrel hike.

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