US SPR Falls to 289.7 Million Barrels as Crude Inventories Rise 4.2 Million
This digest was compiled by AI from multiple sources — links to the originals are below.
U.S. crude oil inventories rose by 4.2 million barrels in the week ending August 21, according to API data. The Strategic Petroleum Reserve fell by 3.7 million barrels to 289.7 million barrels, nearing its operational minimum. Brent crude traded down 4.11% at $88.38 per barrel on Tuesday.
Key Facts
- API estimated U.S. crude oil inventories rose by 4.2 million barrels in the week ending August 21, exceeding analyst expectations of a 1.9 million-barrel build.
- The Strategic Petroleum Reserve fell by 3.7 million barrels to 289.7 million barrels, a level 442 million barrels below maximum capacity.
- Brent crude traded at $88.38 per barrel, down 4.11% on the day, while WTI fell 3.39% to $82.13 per barrel.
- U.S. crude oil production rose to 13.830 million barrels per day for the week ending August 14, up 503,000 bpd from a year earlier.
- Gasoline inventories fell by 3.2 million barrels and distillate inventories fell by 500,000 barrels in the week ending August 21.
Crude Inventory Build
The American Petroleum Institute estimated that U.S. crude oil inventories rose by 4.2 million barrels in the week ending August 21. Analysts had expected a 1.9 million-barrel build, while the prior week saw a decline of 328,000 barrels. Commercial crude inventories excluding the SPR have lost just over 45 million barrels over the last nineteen weeks, but are up 5.8 million barrels for the year, according to API data. Cushing inventory rose by 1 million barrels during the reporting period after falling by 1.439 million barrels the prior week.
Strategic Petroleum Reserve Drawdown
For the week ending August 21, another 3.7 million barrels left the SPR to aid commercial inventories, bringing the total to 289.7 million barrels. That level is 442 million barrels shy of maximum capacity and approaches the generally accepted operational minimum of 250-300 million barrels. Below that range, the reserve may find it difficult to pump and process oil efficiently.
Market Prices and Fuel Stocks
At 2:09 pm ET on Tuesday, Brent crude traded down 4.11% at $88.38 per barrel, a nearly $3 per barrel loss week over week. WTI traded down 3.39% at $82.13 per barrel, down more than $3.50 from the same time last week. Gasoline inventories fell by 3.2 million barrels in the week ending August 21, after rising by 1.076 million barrels the prior week. Distillate inventories fell by 500,000 barrels, following a 2.797 million-barrel loss the prior week, and were 13% below the five-year average heading into the reporting period.
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US SPR Falls to 289.7 Million Barrels as Crude Inventories Rise 4.2 Million
