⛽EIA Energy Stocks🛢️
- Crude Inventories Down ⬇️ 17.0M bbl
- Gasoline Up ⬆️1.5M bbl
- Distillates Down⬇️ 800k bbl
- SPR No Change ⛔
- Domestic prod: 12.2MMbpd
- Ethanol Down ⬇️368k bbl
- Impd mogas demand 8.84Mbpd
- Refiner utilization: 92.7%
Crude Stocks
The U.S. Energy Information Administration (EIA) estimated that there was a significant inventory draw of 17 million barrels during the final week of July, in contrast to a modest decline of 700,000 barrels the previous week. Additionally, the American Petroleum Institute (API) reported a substantial decline of 15.4 million barrels in U.S. oil inventories, which was the largest draw in years and led to a further increase in oil prices.
According to the EIA, crude oil inventories stood at 439.8 million barrels, which is 1% below the five-year average for this time of the year.
Gasoline and Distillates
As for gasoline, the EIA estimated an inventory build of 1.5 million barrels for the last week of July, with daily production averaging 9.8 million barrels. This is compared to a stock decline of 800,000 barrels the previous week, with a production rate of 9.5 million barrels daily.
Regarding middle distillates, the EIA reported an inventory decline of 800,000 barrels for the week ending on July 28, with production averaging 4.9 million barrels per day. This contrasts with an inventory draw of 200,000 barrels the previous week and a production rate of 4.8 million barrels daily.
Oil prices experienced an upward trend, with West Texas Intermediate (WTI) reaching $82 per barrel and Brent crude surpassing $85 per barrel earlier in the week. These price increases were driven by demand forecasts suggesting a considerable supply deficit for the second half of the year, alongside production constraints due to OPEC+ cuts and outages.
Due to the rising prices, the U.S. Department of Energy decided to withdraw an offer made in early July to purchase 6 million barrels of crude for the strategic petroleum reserve. Back then, WTI was trading below $72 per barrel.
As of the latest update, Brent crude was trading at $84.12 per barrel, and WTI was priced at $80.65 per barrel, both showing a decrease from the opening rates.
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