US Oil Product Inventories Continue to Fall
Key Takeaways
- •U.S. commercial crude inventories increased by 2.5 million barrels in the week ending July 31, according to the EIA.
- •Commercial crude stockpiles reached 407 million barrels and remained 6% below the five-year average for the period.
- •Motor gasoline inventories fell by 1.6 million barrels, while middle distillate inventories declined by 3.5 million barrels.
- •Brent futures were up slightly in early New York trading, while WTI futures were lower after the prior day’s sharp selloff.
- •Four-week total products supplied averaged 20.4 million barrels per day, which was 0.9% below the same period a year earlier.
Crude oil inventories in the United States rose by 2.5 million barrels in the week ending July 31, according to new data released Wednesday by the U.S. Energy Information Administration (EIA). The increase lifted commercial crude stockpiles to 407 million barrels, government data showed, leaving inventories 6% below the five-year average for this time of year.
The EIA report followed figures released a day earlier by the American Petroleum Institute (API), which said crude oil inventories had increased by 2.69 million barrels during the period. Weekly inventory reports from the EIA and API are closely watched because they help traders and refiners gauge supply balances across crude and fuels, especially during periods when product stocks are moving in different directions.
Oil futures moved higher in early morning trade after a sharp selloff on Tuesday prompted by renewed discussions of a potential peace deal. At 9:51 a.m. in New York, Brent futures were trading at $79.62 per barrel, up $0.26, or 0.33%, on the day, but about $10 per barrel lower than at the same time last week. WTI was trading at $75.35 per barrel, down $0.42, or 0.55%, on the day and roughly $9 per barrel below its level from the same time last week.
In refined products, the EIA said total motor gasoline inventories fell by 1.6 million barrels after edging higher the previous week. Average daily gasoline production declined to 9.6 million barrels. Middle distillate inventories decreased by 3.5 million barrels, while production fell to an average of 5.2 million barrels per day. Distillate inventories are now 12% below the five-year average, underscoring that fuel stocks have remained tighter than crude even as overall inventories moved higher.
Total products supplied, a proxy for U.S. oil demand, averaged 20.4 million barrels per day over the last four weeks, down 0.9% from the same period a year earlier. Gasoline demand averaged 9.0 million barrels per day over the four-week period, while the four-week average for distillates supplied was 3.6 million barrels per day, up 1.8% year over year.
By Julianne Geiger for Oilprice.com