SPR crude oil inventory remains at a level that is over 40 years low, at 348.4 million barrels, according to a report released on Monday by the Department of Energy (DoE).
After an unexpected 4.067 million barrel gain last week, the American Petroleum Institute (API) reported on Tuesday that this week’s crude oil stocks in the country saw a remarkable fall of 6.195 million barrels.
Analysts estimate that the amount of U.S. crude oil stockpiles would decrease by 2.050 million barrels. According to API data, crude stockpiles have dropped by a net of almost 30 million barrels since April, although the total amount of crude oil received this year is still just around 18 million barrels.
The Strategic Petroleum Reserve (SPR) crude oil inventory remains at a level that is over 40 years low, at 348.4 million barrels, according to a report released on Monday by the Department of Energy (DoE). In a little under ten years, the SPR should reach 2021 levels at that pace of replenishment.
On Tuesday morning, as the data release approached, the WTI and Brent benchmarks were both trading lower due to ongoing concerns that China’s economic growth and associated oil consumption will disappoint. WTI was trading lower by 1.85% at $80.98 a barrel as of 4:15 p.m. EST, down over $2 from this time last week. At $84.90, Brent crude was down $1.10 from this time last week, or 1.52%.
This week’s 700,000 barrel increase in petrol stockpiles more than made up for last week’s 413,000 barrel decrease in the previous week. Compared to this time last year, petrol inventories are around 7% lower. After being reduced by 2.093 million barrels the week before, distillate stockpiles dropped by another 800,000 barrels and are now 17% below the five-year average for this time of year.
According to EIA statistics, for the week ending August 4, American crude oil output increased by 400,000 bpd to 12.6 million bpd. That would be the biggest weekly output rise in years if the weekly projection proves to be almost correct.
Following a drop of 112,000 barrels the previous week, inventories at Cushing, Oklahoma, decreased by another million barrels.