Key facts
- US crude oil inventories fell by 399,000 barrels in the week ending July 3.
- Gasoline inventories decreased by 2.929 million barrels.
- Distillate inventories fell by 1.801 million barrels.
- Strategic Petroleum Reserve inventories dropped by 6.2 million barrels.
- Brent and WTI crude prices saw increases on Tuesday.
US crude oil inventories decreased by an estimated 399,000 barrels in the week ending July 3, according to the American Petroleum Institute (API). This follows a significant draw of over 6 million barrels in the previous week. Despite these draws, overall US crude inventories have only fallen by 8.6 million barrels year-to-date, largely due to substantial releases from the Strategic Petroleum Reserve (SPR).
In the week ending July 3, the SPR saw another draw of 6.2 million barrels, bringing its total to 325.7 million barrels, a level not seen in over four decades and significantly below maximum capacity. US crude oil production for the week ending June 26 was reported by the EIA at 13.810 million barrels per day, a slight decrease from the prior week but up from a year earlier.
Gasoline inventories also fell, by 2.929 million barrels, continuing a trend of decreasing supplies that were already below the five-year average. Distillate inventories decreased by 1.801 million barrels, also sitting below the five-year average. Inventories at Cushing, the delivery hub for WTI futures, fell by 69,000 barrels.
In commodity markets, Brent crude traded up on the day at $76.07 per barrel, and WTI crude was trading at $72.23 per barrel, both showing gains amid reports of attacks on oil tankers in the Strait of Hormuz.