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FinanceUS crude inventories drop 7.2 million barrels; Brent surges to $90.03
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The U.S. Energy Information Administration reported a 7.2 million barrel decrease in crude oil inventories for the week ending July 24, bringing commercial stockpiles to 404.5 million barrels, now 7% below the five-year average. The decline follows API data showing a 3.296 million barrel drop. Crude futures surged sharply, with Brent rising $5.94 to $90.03 per barrel and WTI gaining $5.51 to $84.77, driven by U.S. and Saudi airstrikes against Iran-aligned militias in Iraq in response to drone attacks on Saudi oil infrastructure. Gasoline inventories increased slightly, while distillate stocks rose by 1.1 million barrels, remaining 9% below the five-year average. Total U.S. oil demand averaged 20.3 million barrels per day over four weeks, down 2.3% year-over-year, though distillate demand rose 4.7%.
Source report
Crude oil inventories in the United States decreased by 7.2 million barrels during the week ending July 24, according to data released Wednesday by the U.S. Energy Information Administration (EIA).
Commercial stockpiles now stand at 404.5 million barrels, which is 7% below the five-year average for this time of year.
The EIA report follows data from the American Petroleum Institute (API), released a day earlier, which showed a decline of 3.296 million barrels in crude oil inventories over the same period.
Crude Futures Rally on Geopolitical Tensions
Crude futures rose sharply in early morning trade after the United States and Saudi Arabia conducted airstrikes against Iran-aligned militias in Iraq, in response to drone attacks targeting Saudi oil infrastructure.
As of 9:18 a.m. in New York:
- Brent futures: $90.03 per barrel — up $5.94 (+7.06%) on the day, but roughly $3 per barrel lower than the same time last week.
- WTI futures: $84.77 per barrel — up $5.51 (+6.95%) on Wednesday morning.
Gasoline and Distillate Inventories
- Total motor gasoline inventories increased slightly, following a build of 800,000 barrels the prior week. Average daily gasoline production rose to 9.9 million barrels.
- Middle distillate inventories increased by 1.1 million barrels, with production averaging 5.4 million barrels per day. Distillate inventories are now 9% below the five-year average.
U.S. Oil Demand
Total products supplied — a proxy for U.S. oil demand — averaged 20.3 million barrels per day over the last four weeks, down 2.3% compared to the same period last year.
- Gasoline demand: averaged 8.9 million barrels per day over the last four weeks.
- Distillate demand: averaged 3.7 million barrels per day over the same period, up 4.7% year over year.
By Julianne Geiger for Oilprice.com
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