US Crude Oil Inventories: Shrinking Despite Excess Calls
The American Petroleum Institute (API) reports a significant draw of 2.48 million barrels in US crude oil inventories for the week ending November 28, following a 1.9 million barrel reduction in the prior week. Despite this, US crude oil inventories have shown a net gain of 4.9 million barrels year-to-date, according to API data calculations.
The Department of Energy (DoE) reveals a 300,000 barrel increase in Strategic Petroleum Reserve (SPR) crude oil inventories to 411.7 million barrels as of November 28, an attempt to replenish stocks depleted during the Biden Administration. This comes as US production dipped slightly for the third consecutive week, easing to 13.814 million barrels per day (bpd) as of November 21, according to the EIA.
Despite the overall inventory draw, gasoline inventories saw a 3.14 million barrel increase in the week ending November 28, following a 500,000 barrel rise in the prior week. Gasoline inventories were 3% below the five-year average for the time of year, according to the latest EIA data.
Distillate inventories also rose, gaining 2.88 million barrels, compared to an 800,000 barrel build in the previous week. As of November 21, distillate inventories were 5% below the five-year average.
Cushing inventory, the WTI Crude futures contract delivery hub, dipped by 89,000 barrels after a 300,000 barrel fall in the prior week.
These inventory movements come as the industry grapples with calls for excess crude oil reduction, while also facing production and supply challenges. The market's response to these dynamics remains a key focus for investors and policymakers alike.
