US Crude Oil Inventories Unexpectedly Rise

US crude oil inventories unexpectedly increased by 3.3 million barrels in the week ending July 24, defying market expectations for a 2.5 million-barrel draw. The build followed a 2.6 million-barrel increase in the previous week. Despite the recent gains, commercial crude inventories excluding the Strategic Petroleum Reserve (SPR) have declined by more than 54 million barrels over the past 15 weeks and remain about 3 million barrels lower year to date. Another 3.7 million barrels were withdrawn from the SPR during the week, reducing holdings to 307.7 million barrels, just above the widely accepted operational minimum range of 250-300 million barrels. At the Cushing, Oklahoma hub, inventories fell by 273,000 barrels after a 737,000-barrel decline the previous week. US crude production edged down to 13.80 million bpd from 13.86 million bpd. Meanwhile, gasoline inventories rose by 918,000 barrels, while distillate stockpiles fell by 125,000 barrels.

US crude oil inventories posted an unexpected build of 2.603 million barrels in the week ending July 17, compared with market expectations for a 1.5 million-barrel draw, after a 564,000-barrel decline in the previous week. Despite the increase, commercial crude inventories excluding the Strategic Petroleum Reserve (SPR) have fallen by more than 57 million barrels over the past 13 weeks and remain about 7 million barrels lower year-to-date. At the same time, the SPR declined by another 5.1 million barrels to 316.5 million, the lowest in more than 43 years and roughly 420 million barrels below its maximum capacity. Cushing inventories fell by 737,000 barrels and gasoline stockpiles decreased by 1.379 million barrels, while distillate inventories rose by 1.759 million barrels. US crude production edged up to 13.861 million barrels per day, as oil prices remained supported by renewed US-Iran tensions and continued shipping disruptions through the Strait of Hormuz.

US crude oil inventories fell by 564,000 barrels in the week ending July 10, less than the expected 2.7 million-barrel decline, following a 399,000-barrel draw the previous week. Commercial crude inventories, excluding the SPR, have declined by more than 60 million barrels over the past 12 weeks but remain only 9.2 million barrels lower year-to-date. The SPR fell by another 2.99 million barrels to 316.5 million, the lowest level in more than 43 years and about 415 million barrels below its maximum capacity. Cushing inventories rose by 238,000 barrels after falling 69,000 barrels the week before. Gasoline inventories declined by 1.664 million barrels, while distillate inventories increased by 2.3 million barrels. Meanwhile, US oil production rose to 13.860 million bpd from 13.810 million bpd.