API Reports Significant Crude Oil Inventory Decline

Crude oil inventories in the United States fell this week, by 5.205 million barrels for the week ending August 9, according to The American Petroleum Institute (API), after analysts predicted a smaller 2 million barrel dip.

For the week prior, the API reported a 180,000-barrel increase in crude inventories. 

So far this year, crude oil inventories are close to where they were at the start of the year, having increased by 400,000 barrels, according to API data.

On Monday, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by another 0.7 million barrels as of August 9. Inventories are now at 376.5 million barrels.

Oil prices slid on Tuesday ahead of the API data release. At 03:48 pm ET, Brent crude was trading down $1.69 (-2.05%) on the day at $80.61. While down on the day, it is up more than $4 per barrel from this time last week. The U.S. benchmark WTI was also trading down on the day by $1.83 (-2.29%) at $78.23—up roughly $5 per barrel from this time last week.

Gasoline inventories also fell this week, by 3.689 million barrels, more than offsetting last week’s 3.31-million-barrel increase. Analysts had predicted a 1.1 million barrel draw. As of last week, gasoline inventories are 2% below the five-year average for this time of year, according to the latest EIA data. 

Distillate inventories saw an increase this week of 612,000 barrels, on top of last week’s 1.22-million-barrel increase. Analysts had forecast a 1.8 million barrel draw. Distillates were about 6% below the five-year average for the week ending August 2, the latest EIA data shows. 

Cushing inventories saw a draw of 2.277 million barrels, according to API data, countering the 1.07-million-barrel build in the previous week.

By Julianne Geiger

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