Key facts
- US crude oil inventories fell by 6.072 million barrels in the week ending June 26.
- Strategic Petroleum Reserve inventories are at their lowest level in over four decades.
- US crude oil production increased to 13.819 million barrels per day.
- Gasoline inventories decreased by 2.106 million barrels, while distillate inventories increased by 2.9 million barrels.
- Flows from the Strait of Hormuz have partially resumed, impacting crude oil prices.
Crude oil inventories in the United States experienced a significant decline of 6.072 million barrels in the week ending June 26, according to estimates from the American Petroleum Institute (API). This substantial draw follows a smaller decrease of 765,000 barrels in the previous week. Over the past eleven weeks, commercial crude oil inventories, excluding the Strategic Petroleum Reserve (SPR), have fallen by 59.4 million barrels. However, overall US crude inventories are only down 8 million barrels year-to-date, largely due to draws from the SPR.
In the week ending June 26, the SPR saw another draw of 5.5 million barrels, bringing its total to 325.7 million barrels. This level is lower than the 2023 low reached during a previous large drawdown and represents the lowest inventory level in over four decades. SPR inventories are now 399 million barrels below maximum capacity.
US crude oil production, according to the latest EIA data, rose to 13.819 million barrels per day for the week ending June 19, an increase from 13.806 million barrels per day in the prior week and up 384,000 barrels per day from a year earlier.
Gasoline inventories also fell this week, decreasing by 2.106 million barrels in the week ending June 26. This follows a 1.238 million barrel increase in the prior week. Gasoline inventories were already 5% below the five-year average for this time of year.
Distillate inventories, however, rose by 2.9 million barrels, adding to a 1.447 million barrel gain in the previous week. Despite this increase, distillate inventories were still 10% below the five-year average as of June 19.
The inventory at Cushing, Oklahoma, the delivery hub for WTI Crude futures, increased by 503,000 barrels over the reporting period, after a decrease of 982,000 barrels in the week prior.
Crude oil prices saw a decline on Tuesday afternoon. At 4:36 pm ET, Brent crude was trading down 0.69% at $73.40 per barrel, with flows from the Strait of Hormuz now partially resumed. West Texas Intermediate (WTI) was also trading lower, down 0.98% at $70.06 per barrel, representing a drop of approximately $3 per barrel from the previous Tuesday.