The American Petroleum Institute (API) reported a large draw this week for crude oil of 5.632 million barrels, while analysts predicted a draw of 448,000 barrels.
The build comes as the Department of Energy released a massive 8.1 million barrels from the Strategic Petroleum Reserves in week ending August 19, leaving the SPR with just 453.1 million barrels.
U.S. crude inventories have shed some 67 million barrels since the start of 2021, with a 4 million barrel gain since the start of 2020, according to API data.
In the week prior, the API reported a draw in crude oil inventories of 448,000 barrels after analysts had predicted a draw of 117,000 barrels.
WTI was trading up on Tuesday after Saudi Arabia suggested that the group could look at making production adjustments due to the disconnect between the physical and paper crude markets. WTI was trading up 3.72% on the day at 3:00 p.m. ET in the runup to the release at $93.72 per barrel—more than $7 per barrel up on the week. Brent crude was trading up 3.92% on the day at $100.30—a roughly $8 price hike on the week.
U.S. crude oil production data for the week ending August 12 fell 100,000 bpd to 12.1 million bpd, according to the latest weekly EIA data.
The API reported a build in gasoline inventories this week of 268,000 barrels for the week ending Aug 12, compared to the previous week's 4.480 million-barrel draw.
Distillate stocks saw a build of 1.051 million barrels for the week, compared to last week's 759,000-barrel decrease.
Cushing inventories rose by 679,000 barrels this week. Last week, the API saw a Cushing build of 250,000 barrels. Official EIA Cushing inventories for week ending August 12 was 25.381 million barrels, up from 25.189 million barrels in the prior week.
At 4:42 pm, ET, WTI was trading up at $93.67 (+3.66%), with Brent trading up at $100.30 (+3.91%).
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.