Crude oil inventories in the United States fell by 1.7 million barrels during the week ending July 10, according to the latest figures from the U.S. Energy Information Administration (EIA). Commercial crude stockpiles now stand at 409.7 million barrels, leaving inventories 6% below the five-year seasonal average despite ongoing uncertainty in global energy markets.
The latest government data followed the American Petroleum Institute’s (API) report released a day earlier, which estimated a more modest crude inventory draw of 564,000 barrels over the same reporting period.
Oil Prices Ease Despite Escalating US-Iran Tensions
Oil prices moved lower in Wednesday morning trading even as geopolitical tensions between the United States and Iran intensified. At 10:45 a.m. in New York, Brent crude was trading at $84.08 per barrel, down $0.65 (0.77%) on the day, although it remained approximately $7 per barrel higher than the same time a week earlier. West Texas Intermediate (WTI) also edged lower, slipping $0.21 (0.26%) to $79.13 per barrel.
Gasoline Stocks Shrink While Distillate Inventories Rise
The EIA reported that U.S. gasoline inventories declined by 1.5 million barrels, following the previous week’s draw of 1.9 million barrels. Average gasoline production also eased, falling to 9.6 million barrels per day.
Meanwhile, middle distillate inventories increased by 4.6 million barrels, with daily production averaging 5.3 million barrels. Even after the latest build, distillate inventories remain 11% below the five-year average for this time of year.
US Fuel Demand Holds Steady
The report showed that total products supplied, a commonly used indicator of U.S. petroleum demand, averaged 20.3 million barrels per day over the past four weeks, representing a 0.3% increase compared with the same period last year.
Over the same four-week period, gasoline supplied averaged 8.9 million barrels per day, while distillate demand averaged 3.7 million barrels per day, down 2.1% from a year earlier.