Commercial oil reserves: a record drop for the United States

Weekly commercial crude oil reserves in the United States fell by a record 17 million barrels, far exceeding analysts' forecasts, according to the EIA. This sharp reduction in inventories has triggered a reaction on the market, leading to a fall in Brent and WTI prices.

Partagez:

Weekly commercial crude oil reserves in the United States fell by 17 million barrels, a record well above analysts’ forecasts, according to data released Wednesday by the U.S. Energy Information Administration (EIA).

Commercial oil reserves down: Inventories fall by 17 million barrels in one week, the market reacts.

In the week ending July 28, inventories stood at 439.8 million barrels, 17 million barrels less than the previous week, while analysts were forecasting a reduction of only 1.05 million barrels, according to a consensus drawn up by Bloomberg. On the market, brokers had already anticipated a sharp reduction in US inventories following the release the previous day of figures from the American Petroleum Institute (API), which suggested a drop of 15.4 million barrels. Following the release of the EIA report on Wednesday, crude oil prices, which in theory should have risen given the tighter supply situation, fell back instead.

“The market was actually expecting this increase in inventory drawdown after the API figures, so there was some profit-taking,” commented Kpler’s Matt Smith, pointing out that the price of a barrel had risen sharply over the past month and was meeting resistance.

Significant fall in oil prices following a record drop in US inventories

At around 15:45 GMT, Brent North Sea crude oil for October delivery was down 2.14% at 83.09 dollars. Its US equivalent, a barrel of West Texas Intermediate (WTI) for September delivery, fell by 2.53% to $79.31.

For Matt Smith, “robust exports and sustained refining activity combined to produce the largest-ever drawdown in weekly US crude inventories”.

The analyst added, however, that “we shouldn’t expect such large-scale drawdowns in the future”. Andy Lipow, of Lipow Oil Associates, was more surprised by this record figure.

“Part of the explanation for this huge decrease in inventories, which comes mainly from the Gulf of Mexico region, lies in an increase in refinery activity in this region and in a rise in exports”. “But that’s not enough to explain this huge figure,” he added, wondering whether we shouldn’t expect “a major correction next week”.

Strategic reserves stable at 346.8 million barrels, while exports rise: the US oil market holds steady

Strategic oil reserves, on the other hand, which the government stopped drawing on several weeks ago, remained stable at 346.8 million barrels. Gasoline inventories fell by 1.5 million barrels over the week, as analysts had expected. Crude oil production remained stable at 12.2 million barrels per day.

The refinery utilization rate was 92.7%. Crude oil imports rose slightly (+301,000 b/d), while exports increased much more (+692,000 b/d). Demand fell to 20.02 million barrels per day from 21.2 million the week before.

On average over four weeks, an indicator closely followed by operators, deliveries of gasoline, kerosene and distillates were slightly up by 1.4% on last year. At the same time, they stood at 20.192 million barrels per day.

The anticipated increase in the tax deduction rate may encourage independent refineries in Shandong to restart fuel oil imports, compensating for limited crude oil import quotas.
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
BP Prudhoe Bay Royalty Trust is offering its interest in Prudhoe Bay, North America’s largest oil field, as part of its planned dissolution, assisted by RedOaks Energy Advisors for this strategic asset transaction.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.
Following US strikes in Iran, international energy companies partially evacuate their teams from Iraq as a precaution, while Lukoil maintains its entire personnel on southern oilfields.
Chinese independent refineries remain cautious amid rising Iranian crude prices driven by escalating Iran-Israel tensions, potentially threatening access to the strategic Strait of Hormuz.
Gazprom, affected by a historic $6.9bn loss in 2023, is offering Pakistani state-owned firm OGDCL its petroleum assets in Nigeria to strengthen its presence in Asia’s energy market, according to Pakistani sources.
Donald Trump urges control of oil prices following U.S. military action against Iranian nuclear facilities, amid escalating tensions around the strategic Strait of Hormuz, threatening to significantly impact global markets.
PermRock Royalty Trust announces a monthly distribution of $539,693 to unit holders, impacted by reduced oil volumes and prices in April, partly offset by increased natural gas sales.
Permian Basin Royalty Trust announces a reduced distribution for June due to ongoing excess costs at Waddell Ranch properties and lower volumes from Texas Royalty Properties.
Three months after starting production, Norway’s Johan Castberg oil field, located in the Barents Sea, reaches its full capacity of 220,000 barrels per day, significantly increasing energy supplies to Europe.
New U.S. estimates reveal nearly 29 billion barrels of oil and 392 Tcf of technically recoverable natural gas on federal lands, marking significant progress since the last assessment in 1998.
The United Kingdom tightens sanctions against Russia's oil sector by targeting twenty tankers operating in the "shadow fleet" and Rosneft Marine, amid rising crude prices exceeding the G7-imposed price cap.
French manufacturer Vallourec will supply Qatar with premium OCTG tubes in a contract worth an estimated $50 million, supporting the planned expansion of oil and gas operations by 2030.