U.S. crude oil inventories fell by 4.339 million barrels for the week ending September 20, according to data released by the American Petroleum Institute (API). This decline was larger than analysts’ expectations, who had forecasted a drop of just 1.1 million barrels.
In contrast, the previous week saw an increase of 1.96 million barrels in crude oil inventories. So far in 2024, crude stocks are 15 million barrels lower compared to the start of the year, based on API data.
On Tuesday, the U.S. Department of Energy (DoE) reported an increase in crude oil inventories within the Strategic Petroleum Reserve (SPR), rising by 1.3 million barrels as of September 20. This brings the total in the SPR to 381.9 million barrels. Despite this recent rise, the SPR remains 253 million barrels lower than when President Biden took office, though it has recovered by 35 million barrels from a multi-decade low last summer.
Oil prices climbed on Wednesday ahead of the API’s data release. The rise came after China announced a monetary stimulus aimed at boosting its economy. Other factors contributing to the price surge included concerns about potential supply disruptions in the U.S. due to hurricane threats and ongoing fears of instability in the Middle East.
As of 3:15 pm ET, Brent crude was trading at $75.20, up $1.30, or 1.76%, on the day—an increase of roughly $1.60 from the same time last week. U.S. benchmark West Texas Intermediate (WTI) was also up by $1.24, or 1.76%, trading at $71.61—an increase of nearly $0.50 per barrel compared to last Tuesday.
Gasoline inventories also saw a notable decline, dropping by 3.438 million barrels. This fall more than offset last week’s 2.34-million-barrel increase. According to the latest data from the Energy Information Administration (EIA), gasoline inventories now sit slightly below the five-year average for this time of year.
Distillate inventories fell by 1.115 million barrels, following the previous week’s 2.3-million-barrel rise. Distillates remain approximately 9% below the five-year average as of the week ending September 13, according to the EIA.
Cushing, Oklahoma— a key storage hub—also reported a small decline, with inventories shrinking by 26,000 barrels. This follows a 1.4-million-barrel draw in the prior week, according to API data.
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