The American Petroleum Institute (API) estimated that crude oil inventories in the United States saw a draw of 1.9 million barrels in the week ending November 21. Crude oil inventories gained 4.4 million barrels in the week prior.
Crude oil inventories in the United States are so far showing a net gain of 7.4 million barrels for the year, 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) have risen by 500,000 barrels to 411.4 million barrels in the week ending November 21 as the government attempts to replenish the nation’s oil stockpile that shrank during the Biden Administration.
US production dipped slightly during the week of November 14, easing off a record-setting week just prior. US daily production eased to 13.834 million bpd in the reporting period, according to the EIA. This is 271,000 bpd more than the beginning of the year levels.
At 4:27 pm ET, Brent crude was trading down by $0.90 (-1.42%) on the day, slipping to $62.47 per barrel—a more than $2 per barrel loss week over week on news of an imminent Ukraine/Russia peace deal. WTI was also trading down on the day, by $0.93 (-1.58%) at $57.91—a $2.80 per barrel loss week over week.
Gasoline inventories saw an increase of 500,000 barrels in the week ending November 21, on top of the 1.5 million barrel gain in the week prior. As of last week, gasoline inventories were 3% below the five-year average for this time of year, according to the latest EIA data.
Distillate inventories also rose in the reporting period, gaining 800,000 barrels, compared to the week prior’s 600,000-barrel build. Distillate inventories were 7% below the five-year average as of the week ending November 14, the latest EIA data shows.
Cushing inventory—the inventory kept at the delivery hub for the WTI Crude futures contract—dipped by 300,000 barrels, after falling by 800,000 barrels in the prior week.
By Julianne Geiger for Oilprice.com
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