US Crude Inventories Plunge by 11 Million Barrels

The Strategic Petroleum Reserve (SPR) remained static throughout the week, holding steady at 283 million barrels. This current volume sits precariously close to the 250-million-barrel floor, a threshold officials consider the operational minimum required to ensure efficient pumping and processing. Despite the lack of intervention from the reserve, total crude levels remain comparable to those seen at the start of the year.

Market response was immediate as both global and domestic benchmarks climbed. Brent crude reached $106.02, while WTI settled at $95.75, reflecting gains of $5 and $6 per barrel respectively compared to last week. Meanwhile, domestic production nudged upward to 13.979 million barrels per day. Secondary data showed a mixed picture for refined products: gasoline inventories grew by 1.1 million barrels, while distillate stocks tightened, falling by 1.5 million barrels to sit 12% below the five-year seasonal average. Notably, the Cushing delivery hub saw an influx of 1.823 million barrels, providing a localized cushion for WTI futures.