API Reports Increase in Crude Stocks
Crude oil inventories in the United States increased by 914,000 barrels for the week ending June 21, according to data released by the American Petroleum Institute (API). This rise contrasts with analysts’ expectations, who had predicted a draw of 3 million barrels.
Previous Week’s Build
In the previous week, the API reported a build of 2.264 million barrels in crude inventories, signaling a trend of increasing stockpiles.
Strategic Petroleum Reserve Update
On Tuesday, the Department of Energy (DoE) reported an increase of 1.3 million barrels in the Strategic Petroleum Reserve (SPR) for the same period, bringing total reserves to 372.2 million barrels. Although this marks the highest level since December 2022, it remains significantly lower than the 656 million barrels recorded in June 2020.
Oil Prices React to Inventory Data
Ahead of the API data release on Tuesday, oil prices were already trading lower. At 3:35 PM ET, Brent crude was down $1.09, trading at $84.92 per barrel, a decrease of approximately $0.30 from the previous week. Similarly, the U.S. benchmark, West Texas Intermediate (WTI), saw a 1.05% drop, trading at $80.77 per barrel, down roughly $0.70 from last week.
Gasoline and Distillate Inventory Changes
Gasoline inventories also saw an increase this week, rising by 3.843 million barrels. This follows a decrease of 1.077 million barrels the previous week. Despite the increase, gasoline inventories remain 1% below the five-year average for this time of year, according to the latest data from the Energy Information Administration (EIA).
Distillate inventories, however, fell by 1.178 million barrels this week, in contrast to the previous week’s increase of 538,000 barrels. Distillate stocks are currently about 8% below the five-year average for the week ending June 14, the EIA reports.
Cushing Inventory Decline
Cushing, Oklahoma, the delivery point for WTI futures, also experienced a decline in inventories this week. According to API data, Cushing inventories fell by 350,000 barrels, following a rise of 524,000 barrels the previous week.
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