U.S. crude oil inventories fell by 3.169 million barrels in the week ending July 18, the Energy Information Administration (EIA) reported on Wednesday, broadly confirming the earlier API estimate but with a steeper decline. Analysts had expected a more modest draw, reinforcing signs of strong refining activity and steady demand amid peak summer travel.
Inventories at the Cushing, Oklahoma delivery hub rose by 455,000 barrels, signaling a slight increase in storage at the critical NYMEX WTI settlement point.
Gasoline stocks also fell by 1.738 million barrels, reflecting drawdowns in some regions but not all. As OPIS’s Tom Kloza noted on X, “Interesting gasoline data from EIA. Demand trailing same week last year by about 490,000 b/d. Bifurcated inventories – East Coast saw a solid decrease of 3.3m bbl of gasoline; West Coast saw gasoline stocks climb by 1.1-million barrels.” While national inventories remain near the five-year average, the regional divergence underscores a mixed demand picture. Gasbuddy’s Patrick de Haan on X noted that this week likely represents the peak week for US gasoline consumption for the entire year, estimating demand to be between 9.1-9.3mbpd.
Distillate inventories surged by 2.931 million barrels—contrary to seasonal expectations. This moderate build suggests a front-loaded boost in U.S. refining activity to rebuild low stocks. According to EIA data, as of the previous week, distillate inventories were sitting 21% below the five-year average.
Meanwhile, the U.S. Strategic Petroleum Reserve (SPR) saw another rare decline, falling by 200,000 barrels to 402.5 million barrels. The draw was linked to a loan to ExxonMobil to resolve quality issues tied to Mars-grade crude at the company’s Baton Rouge facility.
At 10:00 a.m. Central Time, Brent crude was trading at $68.22, down $0.37 (-0.54%) on the day, while WTI was down $0.36 (-0.55%) at $64.95 per barrel.
By Tom Kool for Oilprice.com
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