The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell by 6.072 million barrels in the week ending June 26. In the week prior, US crude oil inventories fell by 765,000 barrels.
Although commercial crude oil inventories excluding the SPR have been falling rapidly for more than two months, shedding 59.4 million barrels over the last eleven weeks, US crude inventories are only down 8 million barrels so far this year, according to API data, kept in check by draws from the SPR.
For the week ending June 26, another 5.5 million barrels left the SPR, bringing the new total to 325.7 million barrels—lower than the 2023 low reached during the Biden Administration’s huge drawdown and the lowest level in over four decades. SPR inventories are now 399 million barrels shy of maximum capacity.
US production rose to 13.819 million bpd for the week ending June 19, up from 13.806 million bpd in the week prior, according to the latest EIA data, and up 384,000 bpd from a year earlier.
At 4:36 pm ET on Tuesday, Brent crude was trading down on the day at $73.40 (-0.69%), with flows from the Strait of Hormuz now partially resumed.
WTI was also trading down on the day, by $0.69 per barrel (-0.98%) at $70.06, which is a roughly $3 per barrel dropoff from last Tuesday.
Gasoline inventories fell this week, by 2.106 million barrels in the week ending June 26. In the week prior, gasoline inventories increased by 1.238 million barrels. In the week prior, gasoline inventories were already 5% below the five-year average for this time of year, according to the latest EIA data.
Distillate inventories rose by 2.9 million barrels, after gaining 1.447 million barrels in the week prior. Distillate inventories were already 10% below the five-year average as of the week ending June 19, the latest EIA data shows.
Cushing inventory—the inventory kept at the delivery hub for the WTI Crude futures contract—rose 503,000 barrels over the reporting period after falling 982,000 barrels in the week prior.
By Julianne Geiger for Oilprice.com
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