Key facts
- US crude oil inventories increased by 2.603 million barrels in the week ending July 17.
- Strategic Petroleum Reserve (SPR) inventories decreased by 5.1 million barrels, reaching their lowest level in over 43 years.
- US crude production rose to 13.861 million barrels per day.
- Gasoline inventories fell by 1.379 million barrels, while distillate inventories rose by 1.759 million barrels.
- Brent crude prices rose to $91.36 and WTI crude prices increased to $84.51 amid geopolitical tensions.
US crude oil inventories saw an estimated build of 2.603 million barrels in the week ending July 17, according to the American Petroleum Institute (API). This follows a decrease of 564,000 barrels in the previous week.
Despite a significant drawdown of 5.1 million barrels from the Strategic Petroleum Reserve (SPR) during the reporting week, bringing its total to 316.5 million barrels, overall US crude inventories are only down 7 million barrels year-to-date. The SPR is now at its lowest level in over 43 years and is 420 million barrels shy of maximum capacity, with operational minimums generally considered to be between 250-300 million barrels.
US crude production has seen a slight increase, reaching 13.861 million barrels per day in the week ending July 10. Gasoline inventories fell by 1.379 million barrels, while distillate inventories rose by 1.759 million barrels. Inventories at Cushing, the delivery hub for WTI futures, decreased by 737,000 barrels.
Amid escalating tensions between the US and Iran, Brent crude prices rose by 2.40% to $91.36 per barrel, and WTI crude prices increased by 2.46% to $84.51 per barrel. Reports also indicated a Kuwaiti tanker was hit in the Strait of Hormuz.