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FinanceAPI: US crude inventories drop 6.072m barrels, SPR hits over 40-year low
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The API reported a 6.072 million barrel drop in US crude inventories for the week ending June 26, accelerating from a 765,000 barrel decline the prior week. Commercial crude stocks have fallen 59.4 million barrels over eleven weeks, but year-to-date declines are limited to 8 million barrels due to Strategic Petroleum Reserve (SPR) draws. The SPR lost another 5.5 million barrels, reaching 325.7 million barrels—the lowest level in over four decades and 399 million barrels below maximum capacity. US oil production edged up to 13.819 million bpd, up 384,000 bpd year-over-year. Gasoline inventories fell 2.106 million barrels, while distillates rose 2.9 million barrels. Cushing stockpiles increased by 503,000 barrels. At the same time, Brent crude fell 0.69% to $73.40 and WTI dropped 0.98% to $70.06 as flows through the Strait of Hormuz partially resumed after earlier disruptions.
Source report
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 prior week, U.S. crude oil inventories had declined by 765,000 barrels.
Commercial Inventories and SPR Drawdown
Although commercial crude oil inventories (excluding the Strategic Petroleum Reserve, or SPR) have been falling rapidly for more than two months—shedding 59.4 million barrels over the last eleven weeks—U.S. 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. This level is:
- Lower than the 2023 low reached during the Biden Administration’s huge drawdown
- The lowest level in over four decades
SPR inventories are now 399 million barrels shy of maximum capacity.
U.S. Production
U.S. production rose to 13.819 million barrels per day (bpd) for the week ending June 19, up from 13.806 million bpd in the prior week, according to the latest EIA data. This represents an increase of 384,000 bpd from a year earlier.
Crude Oil Prices
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 crude was also trading down on the day, by $0.69 per barrel (-0.98%) at $70.06, a roughly $3 per barrel drop-off from last Tuesday.
Product Inventories
Gasoline
- Fell by 2.106 million barrels in the week ending June 26.
- In the prior week, gasoline inventories increased by 1.238 million barrels.
- As of the prior week, gasoline inventories were already 5% below the five-year average for this time of year, according to the latest EIA data.
Distillates
- Rose by 2.9 million barrels, after gaining 1.447 million barrels in the prior week.
- As of the week ending June 19, distillate inventories were already 10% below the five-year average, the latest EIA data shows.
Cushing Inventory
- Inventory at the delivery hub for the WTI Crude futures contract rose by 503,000 barrels over the reporting period, after falling 982,000 barrels in the prior week.
By Julianne Geiger for Oilprice.com
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Part of this Story
U.S. crude oil inventories drop for sixth straight week, SPR continues drawdown