- US oil inventories draw saw crude stocks fall by 974,000 barrels in mid-August.
- Gasoline and distillate inventories also dropped, leaving supplies below five-year averages.
US oil inventories highlight a significant decline across petroleum products, reflecting both market pressures and shifting supply-demand balances. According to the American Petroleum Institute (API), crude oil stocks fell by 974,000 barrels in the week ending 15 August. Analysts, however, had expected a sharper draw of around 1.7 million barrels.
Despite this weekly decline, overall crude inventories are still up by 6.8 million barrels this year. Oilprice data suggest that stocks remain relatively high compared with previous years, indicating that the market is far from short on crude supply.
At the same time, the Department of Energy (DoE) confirmed that Strategic Petroleum Reserve (SPR) inventories rose by 800,000 barrels, reaching 404.2 million barrels. This increase shows that the United States continues to prioritise long-term energy security, even while commercial inventories fall.
Oil prices reflected the shifting balance. Brent crude slipped by $1.52, or 2.21%, to $67.28 per barrel. Still, prices remained $1.30 above last week’s average. Similarly, West Texas Intermediate (WTI) dropped by $1.49, or 2.21%, settling at $63.37 yet it also stayed higher than last week by nearly $0.80.
Refined product inventories fell as well. Gasoline supplies dropped by 2.06 million barrels in the week ending 22 August. The Energy Information Administration (EIA) confirmed that gasoline stocks are now 1% below the five-year seasonal average. Distillates followed the same pattern, declining by 1.49 million barrels after a build the previous week. With levels already 13% under the five-year average, distillate stocks remain particularly tight.
Cushing, Oklahoma, the delivery hub for US crude futures, also recorded a draw of 497,000 barrels, extending the prior week’s decline.
Altogether, the US oil inventories draw shows a tightening market across crude, gasoline and distillates. Although the SPR is being replenished, commercial stock declines may sustain price volatility in the weeks ahead.