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US crude inventories rise as API data diverges from draw expectations
API estimated US crude inventories increased by 2.69 million barrels in the week ended July 30, while another 2.9 million barrels left the SPR in the week ended July 31.
Oil prices faced pressure after the American Petroleum Institute estimated US crude oil inventories rose by 2.69 million barrels in the week ending July 30, even though analysts expected a 2 million barrel draw. In the prior week, API data showed inventories fell by 3.3 million barrels, according to OilPrice.
The inventory picture remained mixed because commercial crude inventories excluding the Strategic Petroleum Reserve have declined by just over 58 million barrels over the past sixteen weeks. OilPrice also cited year-to-date changes showing US crude inventories down 7.2 million barrels for the year, with the SPR draws helping keep those stocks in check.
OilPrice further reported that for the week ending July 31, another 2.9 million barrels were withdrawn from the SPR, bringing the SPR total to 304.8 million barrels. The outlet said SPR inventories are now 427 million barrels below maximum capacity, and it noted an operational minimum range of 250 to 300 million barrels.
On the supply side, US production for the week ending July 24 slipped slightly to 13.796 million bpd, from 13.798 million bpd the week before, OilPrice said. In addition, Brent was trading down around $79.24 at 2:11 pm ET Tuesday, reflecting a nearly $5 per barrel weekly drop amid market pricing of new Iran and US-related rumors, according to the outlet.
Latest closeWTI crude $75.32 ▼6.2%|Brent $78.86 ▼5.9%