The American Petroleum Institute (API) estimated that crude oil inventories in the United States rose sharply this week, gaining an additional 7.1 million barrels in the week ending July 4, despite analysts estimating a 2.8-million-barrel draw.
So far this year, crude oil inventories are up 11 million barrels, according to Oilprice calculations of API data.
Earlier this week, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) climbed 200,000 barrels to 403 million barrels in the week ending July 4. Inventory levels in the SPR are hundreds of millions shy of the levels in inventory prior to the SPR withdrawal that took place under the Biden Administration.
At 1:30 pm ET, Brent crude was trading up $0.92 (+1.32%) on the day, landing at $70.50—up more than $3 per barrel from last Tuesday.
WTI was also trading up on the day, by $0.80 (+1.18%) at $68.73—also up more than $3 per barrel from last week’s price.
Gasoline inventories fell in the week ending July 4 by 2.2 million barrels, on top of last week’s 1.920-million-barrel increase in the week prior. As of last week, gasoline inventories were 1% below the five-year average for this time of year, according to the latest EIA data.
Distillate inventories also fell this week, by 800,000 barrels. In the week prior, distillate inventories slipped 3.458 million barrels. Distillate inventories were already a staggering 21% below the five-year average as of the week ending June 27, the latest EIA data shows.
Cushing inventories—the benchmark crude stored and traded at the key delivery point for U.S. futures contracts in Cushing, Oklahoma—rose 100,000 barrels in the week after falling 1.417 million barrels in the week prior.
By Julianne Geiger for Oilprice.com
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