Key facts
- US crude oil inventories increased by 3.296 million barrels in the week ending July 24.
- The Strategic Petroleum Reserve (SPR) decreased by 3.7 million barrels.
- Brent crude prices fell to $83.95, and WTI crude prices fell to $79.10.
- Gasoline inventories rose by 918,000 barrels, while distillate inventories fell by 125,000 barrels.
- US crude production was down slightly week-over-week.
US crude oil inventories saw another build of 3.296 million barrels in the week ending July 24, according to estimates from the American Petroleum Institute (API). This follows a build of 2.603 million barrels in the prior week. Despite these increases, commercial crude inventories have seen a net loss of over 54 million barrels in the last fifteen weeks, with the year-to-date decrease standing at just 3 million barrels, largely due to significant drawdowns from the Strategic Petroleum Reserve (SPR).
For the week ending July 24, the SPR released an additional 3.7 million barrels, bringing its total reserves down to 307.7 million barrels. This level is significantly below the 2023 low and represents the lowest point in over 43 years, with current reserves being 424 million barrels below maximum capacity. The operational minimum for the SPR is generally considered to be between 250-300 million barrels, below which efficient pumping and processing may become challenging.
US crude production for the week ending July 17 was slightly down from the previous week at 13.798 million barrels per day, though it remains up 525,000 barrels per day from a year earlier. Gasoline inventories increased by 918,000 barrels, while distillate inventories decreased by 125,000 barrels. Inventories at Cushing, the delivery hub for WTI futures, fell by 273,000 barrels.
In terms of pricing, Brent crude was trading down at $83.95 per barrel, a decrease of more than $7 from the previous week. West Texas Intermediate (WTI) also traded lower, down $3.51 on the day to $79.10 per barrel, marking a drop of over $5 from the prior week.