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The American Petroleum Institute (API) reported a draw this week for crude oil of 1.27 million barrels. U.S. crude inventories have grown by roughly 27 million barrels so far this year, according to API data, while the U.S. Strategic Petroleum Reserves fell by nearly seven times that figure, at 188 million barrels.
The draw in crude oil inventories was despite the Department of Energy’s release of 3.6 million barrels from the Strategic Petroleum Reserves in the week ending October 14, leaving the SPR with 405.1 million barrels.
In the week prior, the API reported a build in crude oil inventories of 7.054 million barrels.
WTI fell further on Tuesday, continuing the price slide that began last week. At 2:12 p.m. ET, WTI was trading down $2.41 (-2.82%) on the day at $83.05 per barrel—down $4 per barrel from the prior week, with the OPEC+ bump completely erased. Brent crude was trading down $1.58 (-1.72%) on the day at $90.04—an decrease of $2.40 on the week.
U.S. crude oil production has remained flat for months. For the week ending October 7, U.S. crude oil production fell to 11.9 million bpd, according to the latest weekly EIA data. This is just a 200,000 bpd rise from the levels seen at the start of the year, and still a 1.2 million bpd shortfall from the levels seen at the start of the pandemic.
The API reported a draw in gasoline inventories this week of 2.17 million barrels for the week ending October 14, compared to the previous week’s 2.008 million-barrel build.
Distillate stocks also saw a draw this week, with a loss of 1.09 million barrels, on top of last week’s 4.560-million-barrel decrease.
Cushing inventories rose 89,000 barrels in the week to October 14. In the week prior, the API saw a Cushing decrease of 750,000 barrels. Official EIA Cushing inventory for the week ending October 7 was 25.647 million barrels, down from 25.956 million barrels in the prior week.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.