US Oil Stocks Increase Despite Draw Forecast

US crude oil inventories rose by 2.69 million barrels in the week ending July 31st, defying expectations for a 2 million-barrel draw. The previous week saw an increase of 3.3 million barrels. Excluding the Strategic Petroleum Reserve (SPR), commercial crude inventories have fallen by more than 58 million barrels over the past 16 weeks and are down 7.2 million barrels year-to-date. The SPR declined by another 2.9 million barrels to 304.8 million, approaching its estimated operational minimum of 250-300 million barrels. Cushing inventories increased by 2.36 million barrels. US crude production eased to 13.796 million bpd from 13.798 million bpd the previous week but remained 482,000 bpd above year-ago levels. Gasoline inventories rose by 156,000 barrels, while distillate stocks fell by 1.2 million barrels.

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 Another 3.7 million barrels were withdrawn from the SPR during the week, reducing holdings to 307.7 million barrels, just above the widely accepted operational minimum range of 250-300 million barrels.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.