Key facts
- US crude oil inventories decreased by 8.33 million barrels in the week ending June 12.
- US Strategic Petroleum Reserve inventories fell by 8.9 million barrels, reaching the lowest level since 1983.
- US crude production increased to 13.799 million barrels per day.
- Brent and WTI crude prices experienced significant declines.
- Gasoline inventories increased by 2.479 million barrels, while distillate inventories decreased by 461,000 barrels.
Crude oil inventories in the United States saw a significant decrease for the week ending June 12, with the American Petroleum Institute (API) estimating an 8.33 million barrel draw, surpassing the 4.5 million barrel expectation from analysts. This follows a substantial 9.119 million barrel decline in the previous week.
Despite these rapid drawdowns over the past nine weeks, which have shed 52 million barrels, US crude inventories are only down 1.4 million barrels year-to-date, according to API data. The Strategic Petroleum Reserve (SPR) also experienced a rapid depletion, with another 8.9 million barrels removed in the week ending June 12. This brings the SPR total to 340.3 million barrels, the lowest level since 1983 and 385 million barrels shy of maximum capacity, as the Trump administration seeks to ease pricing pressures.
US crude production, however, saw an increase, rising to 13.799 million barrels per day for the week ending June 5, up from 13.707 million barrels per day in the prior week and 371,000 barrels per day higher than a year ago, according to EIA data.
Market reaction saw Brent crude trading sharply down at $79.18 per barrel and WTI crude at $76.25 per barrel, both down significantly on the day and approximately $12 per barrel lower than the previous week. This decline is attributed to a preliminary deal between the US and Iran that could end the Iran war and reopen the Strait of Hormuz.
In product inventories, gasoline stocks rose by 2.479 million barrels for the week ending June 12, though they remain 6% below the five-year average. Distillate inventories fell by 461,000 barrels, and are 13% below the five-year average. Inventories at Cushing, the delivery hub for WTI futures, decreased by 1.523 million barrels.