The U.S. Energy Information Administration showed that crude oil inventories decreased by 400,000 barrels over the week to July 15, versus the expected 748,000-barrel build compiled by a Bloomberg survey.
On Tuesday, the American Petroleum Institute reported that crude oil inventories grew by 1.86 million barrels for the week to July 15.
Last week, the EIA report showed a build in crude oil inventories of 3.3 million barrels—a rare occurrence in the middle of peak driving season in the United States, but helped along by the amount of crude oil released from the nation’s Strategic Petroleum Reserve.
For gasoline, the EIA reported an inventory increase of 3.5 million barrels, adding to the previous build of 5.8 million barrels in the week prior.
Gasoline production in the week to July 15 averaged 9.4 million bpd, up substantially from the previous week’s 8.9 million bpd.
Middle distillates inventory saw a decrease of 1.3 million barrels for last week, with production averaging 5 million barrels per day. The previous week saw an increase of 2.7 million barrels in distillates inventories, with production averaging 5.1 million bpd.
While oil prices were trading down on the day in the runup to the release, oil prices were still trading above $100. At 9:25 am ET, WTI was trading down $1.46 per barrel at $102.80 (-1.40%), with Brent trading down $1.73 to $105.60 (-1.61%) per barrel as recession fears once again trump the tight supply situation.
U.S. refinery run rates continue to push the capacity limits, with the average for last week at 93.7% million bpd. This compared with 94.9 percent a week earlier.
Crude oil imports averaged 6.5 million bpd last week, which compared with 6.7 million bpd a week earlier.
By Julianne Geiger for Oilprice.com
- Auto Sales Are Slipping As Recession Fears Grip Markets
- Halliburton Q2 Income Surges As Global Drilling Activity Rises
- Which Countries Are The Most Reliant On Nuclear Power?