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FinanceAPI: US crude inventories see 833k barrel draw, down 52m barrels over nine weeks
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The American Petroleum Institute (API) reported a 8.33 million barrel draw in US crude oil inventories for the week ending June 12, exceeding analyst expectations of a 4.5 million draw. Over the past nine weeks, inventories have shed 52 million barrels, though year-to-date they are only down 1.4 million barrels. The Strategic Petroleum Reserve (SPR) fell by another 8.9 million barrels to 340.3 million barrels, the lowest level since 1983. US crude production rose to 13.799 million barrels per day. Meanwhile, oil prices dropped sharply, with Brent crude falling 4.80% to $79.18 and WTI down 5.57% to $76.25, amid a preliminary US-Iran deal that could reopen the Strait of Hormuz. Gasoline inventories rose by 2.479 million barrels, while distillate inventories fell by 461,000 barrels. Cushing inventory also declined by 1.523 million barrels.
Source report
By Julianne Geiger for Oilprice.com
Crude Oil Inventories
The American Petroleum Institute (API) estimated that U.S. crude oil inventories fell by 8.33 million barrels in the week ending June 12. Analysts had expected a draw of 4.5 million barrels. In the prior week, U.S. crude oil inventories declined by a substantial 9.119 million barrels.
According to API data, although inventories have been falling rapidly for over two months—shedding 52 million barrels over the last nine weeks—U.S. crude inventories are only down 1.4 million barrels so far this year.
Strategic Petroleum Reserve (SPR)
Inventories in the U.S. Strategic Petroleum Reserve are also declining quickly as the Trump Administration seeks to alleviate pricing pressure. For the week ending June 12, another 8.9 million barrels were released from the SPR, bringing the total to 340.3 million barrels.
This level is:
- Lower than the 2023 low reached during the Biden Administration’s large drawdown
- The lowest level since 1983
- 385 million barrels shy of maximum capacity
U.S. Production
According to the latest EIA data, U.S. production rose to 13.799 million barrels per day (bpd) for the week ending June 5, up from 13.707 million bpd in the prior week, and up 371,000 bpd from a year earlier.
Oil Prices
At 2:51 pm ET on Tuesday, before data release:
- Brent crude traded sharply down at $79.18 (-4.80%), a drop of $12 per barrel from this time last week, as the U.S. and Iran signed a preliminary deal to end the Iran war and reopen the Strait of Hormuz.
- WTI crude traded down at $76.25 (-5.57%), a decline of $4.50 per barrel and roughly $12 lower than last Tuesday.
Product Inventories
Gasoline
- Change: +2.479 million barrels in the week ending June 12
- Prior week: -1.191 million barrels
- As of the prior week, gasoline inventories were already 6% below the five-year average for this time of year (latest EIA data)
Distillates
- Change: -461,000 barrels in the week ending June 12
- Prior week: +1.3 million barrels
- As of the week ending June 5, distillate inventories were already 13% below the five-year average (latest EIA data)
Cushing, Oklahoma
- Change: -1.523 million barrels over the reporting period
- Prior week: -1.125 million barrels
Cushing inventory is the crude stored at the delivery hub for the WTI crude futures contract.
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Source
OilPrice.com Daily News UpdateWestern
Part of this Story
U.S. crude oil inventories drop for sixth straight week, SPR continues drawdown