U.S. weekly crude inventories down sharply

Weekly US crude oil reserves fell significantly last week, exceeding analysts' expectations, while gasoline inventories rose. Oil production is at its highest level since the pandemic, but demand has weakened, impacting oil prices.

Share:

Subscribe for unlimited access to all energy sector news.

Over 150 multisector articles and analyses every week.

Your 1st year at 99 $*

then 199 $/year

*renews at 199$/year, cancel anytime before renewal.

Weekly commercial crude oil reserves in the United States fell sharply again last week, more than analysts had expected, but gasoline reserves rose, according to data released Wednesday by the U.S. Energy Information Administration (EIA).

Weekly crude inventories: A sharp drop of 6.1 million barrels, but gasoline reserves on the rise

In the week ending August 18, crude inventories fell by 6.1 million barrels to 433.5 million barrels. Analysts were expecting a smaller decrease of 3 million, according to a Bloomberg consensus. Gasoline reserves, meanwhile, rose by 1.5 million barrels, whereas projections were for a decrease of almost half a million barrels.

“Continued strength in refining activity and crude exports has supported a sharp decline in oil inventories, while the summer peak in refinery operations has led to increased production of gasolines and distillates,” explained Kpler’s Matt Smith.

The refinery activity rate held steady at 94.5%, after 94.7% the week before. Crude oil prices were easing off around 15:00 GMT. Brent North Sea crude oil for October delivery lost 1.07% to 83.11 dollars. Its US equivalent, a barrel of West Texas Intermediate (WTI) for delivery in the same month, the first day of its use as a benchmark contract, was down 0.99% at 78.82 dollars.

U.S. crude production reaches post-pandemic peak, while demand weakens

U.S. crude production stood at 12.8 million barrels per day, “a post-pandemic high”, noted Matt Smith. Exports remained strong at 4.2 million b/d (-341,000 b/d), while imports stood at 6.9 mb/d versus 7.1 mb/d the previous week. The government marginally refilled the strategic reserves, which now stand at 348.9 million barrels, compared with 348.4 million.

Demand fell to 21.16 million barrels per day from 21.66 mb/d the week before. On average over four weeks, an indicator closely followed by operators, deliveries of gasoline, kerosene and distillates were up 4.5% on the same period last year, at 20.894 million barrels per day.

With net output reaching 384.6 million barrels of oil equivalent, CNOOC Limited continues its expansion, strengthening both domestic and international capacities despite volatile crude oil prices.
The Daenerys oil discovery could increase Talos Energy’s proved reserves by more than 25% and reach 65,000 barrels per day, marking a strategic shift in its Gulf of Mexico portfolio.
The United States will apply 50% tariffs on Indian exports in response to New Delhi’s purchases of Russian oil, further straining trade relations between the two partners.
Rising energy demand is driving investments in petrochemical filtration, a market growing at an average annual rate of 5.9% through 2030.
Chevron has opened talks with Libya’s National Oil Corporation on a possible return to exploration and production after leaving the country in 2010 due to unsuccessful drilling.
The Impact Assessment Agency of Canada opens public consultation on its 2024-2025 draft monitoring report for offshore oil and gas exploratory drilling off Newfoundland and Labrador.
Cenovus Energy announces the acquisition of MEG Energy through a mixed transaction aimed at strengthening its position in oil sands while optimizing cost structure and integrated production.
Vantage Drilling International Ltd. extends the validity of its conditional letter of award until August 29, without changes to the initial terms.
Libya is preparing to host an energy forum in partnership with American companies to boost investment in its oil and gas sectors.
The Bureau of Ocean Energy Management formalizes a strategic environmental review, setting the framework for 30 oil sales in the Gulf of America by 2040, in line with a new federal law and current executive directives.
Amid repeated disruptions on the Druzhba pipeline, attributed to Ukrainian strikes, Hungary has requested U.S. support to secure its oil supply.
Norwegian producer Aker BP raises its oil potential forecast for the Omega Alfa well, part of the Yggdrasil project, with estimated resources reaching up to 134 million barrels of oil equivalent.
Bruno Moretti, current special secretary to the presidency, is in pole position to lead Petrobras’ board of directors after Pietro Mendes’ resignation for a regulatory role.
Next Bridge Hydrocarbons completes a $6 million private debt raise to support its involvement in the Panther project while restructuring part of its existing debt.
Sinopec Shanghai Petrochemical reported a net loss in the first half of 2025, impacted by reduced demand for fuels and chemical products, as well as declining sales volumes.
Zener International Holding takes over Petrogal’s assets in Guinea-Bissau, backed by a $24 million structured financing deal arranged with support from Ecobank and the West African Development Bank.
Petrobras board chairman Pietro Mendes resigned after his appointment to lead the National Petroleum Agency, confirmed by the Senate.
Bahrain has signed an energy concession agreement with EOG Resources and Bapco Energies, reinforcing its national strategy and opening the way to new opportunities in oil and gas exploration.
Talos Energy confirmed the presence of oil in the Daenerys area, located in the Gulf of Mexico, after a successful sub-salt drilling operation completed ahead of schedule.
Thanks to strong operational performance, Ithaca Energy recorded record production in the first half of 2025, supporting improved annual guidance and significant dividend distributions.

Log in to read this article

You'll also have access to a selection of our best content.

or

Go unlimited with our annual offer: $99 for the 1styear year, then $ 199/year.