Oil prices rose today after the Energy Information Administration reported crude oil inventories in the country had shed 1 million barrels in the week to May 20.
At 419.8 million barrels, crude oil inventories are 14 percent below the five-year average for this time of the year.
Last week’s inventory change compared with a draw of 3.4 million barrels estimated for the previous week.
In gasoline, the EIA reported an inventory decline of 500,000 barrels for the week to May 20, with gasoline production averaging 9.4 million bpd.
The week before, gasoline inventories shed 4.8 million barrels and production averaged 9.6 million barrels daily.
In middle distillates, the authority estimated an inventory increase of 1.8 million barrels. Production stood at an average of 5.1 million bpd.
This compared with an inventory build of 1.2 million barrels and a production rate of 4.9 million bpd a week earlier.
Gasoline prices continued breaking records last week, reaching $4.598 per gallon on Tuesday, according to the AAA. Diesel prices were lower, however, at $5.549 per gallon on Tuesday, down from $5.573 per gallon a week ago.
The diesel fuel situation in the U.S. and not just there continues to be close to critical because of the tightness of available inventory. To quench concerns, the Biden administration announced it was considering a release from the emergency diesel reserve.
Diesel fuel supplies are especially tight on the East Coast, where inventories have fallen to the lowest since at least 1990, according to the Wall Street Journal.
Crude oil prices also remain elevated as the demand/supply situation remains unchanged even though worry about recession has served to limit the upside potential of benchmarks. OPEC’s de facto leader Saudi Arabia signaled once again it had no plans to boost production further and the EU continued to discuss an oil embargo on Russia.
The U.S., meanwhile, is considering the possibility of an export ban in a bid to rein in domestic fuel prices, CNBC reported on Tuesday, citing Energy Secretary Jennifer Granholm.
By Irina Slav for Oilprice.com
More Top Reads from Oilprice.com:
- Biden Could Tap Diesel Reserve In A Bid To Ease Fuel Crunch
- Oil Markets Are Bracing For A Slew Of Bullish News
- World Sees First Global Energy Shock: World Energy Council