The American Petroleum Institute (API) estimated that crude oil inventories in the United States saw yet another large draw, this time of 9.3 million barrels in the week ending December 12. Crude oil inventories shrank by 4.8 million barrels in the week prior.
Crude oil inventories in the United States are so far showing a net decrease of just 9.2 million barrels for the year, 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) have risen by 300,000 barrels to 412.2 million barrels in the week ending December 12 as the Trump Administration slowly works to replenish depleted stockpiles.
US production rose during the week of December 5 to 13.853 million bpd, up from 13.815 million bpd in the week prior, according to the latest EIA data. This is 290,000 bpd more than the beginning of the year levels.
At 4:17 pm ET, Brent crude was trading down by $1.73 (-2.86%) on the day, slipping below the $60 mark for the first time this year at $58.82 per barrel. The figures are well over a $3 loss week over week. WTI was also trading down on the day, by $1.70 (-2.99%) at $55.12.
Gasoline inventories saw another large increase this week, gaining 4.8 million barrels in the week ending December 12. In the week prior, gasoline inventories grew by 7 million barrels. 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 rose in the reporting period, gaining 2.5 million barrels, on top of the week prior’s 1-million-barrel build. Distillate inventories were still 7% below the five-year average as of the week ending December 5, the latest EIA data shows.
Cushing inventory—the inventory kept at the delivery hub for the WTI Crude futures contract—dipped by 510,000 barrels, after falling by 890,000 barrels in the prior week.
By Julianne Geiger for Oilprice.com
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