popular articles

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.

Please share:

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.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The U.S. Environmental Protection Agency (EPA) has announced it will reconsider the rule limiting CO2 emissions from power plants. This decision is part of the Trump administration's continued deregulatory agenda.
After ten years of interruption due to internal conflicts, Libya has restarted production at the Mabruk field. This resumption aims to support the national economy by increasing the country's oil production capacity.
After ten years of interruption due to internal conflicts, Libya has restarted production at the Mabruk field. This resumption aims to support the national economy by increasing the country's oil production capacity.
China's oil demand for fuels saw a slight decline in 2024, signaling the end of a decade of sustained growth as the country shifts its economy and transportation systems.
China's oil demand for fuels saw a slight decline in 2024, signaling the end of a decade of sustained growth as the country shifts its economy and transportation systems.
At the CERAWeek conference in Houston, the leaders of major oil companies confirmed a strategic shift towards oil and gas, prioritising profitability and energy supply amid uncertainties in the renewable energy market.
At the CERAWeek conference in Houston, the leaders of major oil companies confirmed a strategic shift towards oil and gas, prioritising profitability and energy supply amid uncertainties in the renewable energy market.
Venezuelan President Nicolás Maduro has announced the opening of the oil sector to foreign investment after the United States revoked Chevron’s operating license, requiring the company to liquidate its operations by April 3.
The Organization of the Petroleum Exporting Countries (OPEC) forecasts an increase in global oil demand of 1.4 million barrels per day in 2025, driven by air and road transport. Consumption is expected to reach 106.6 million barrels per day in 2026.
The Organization of the Petroleum Exporting Countries (OPEC) forecasts an increase in global oil demand of 1.4 million barrels per day in 2025, driven by air and road transport. Consumption is expected to reach 106.6 million barrels per day in 2026.
British company Tower Resources is intensifying preparations for drilling the NJOM-3 well on the Thali block, awaiting government approval for a license extension and a farm-out agreement with Prime Global Energies.
British company Tower Resources is intensifying preparations for drilling the NJOM-3 well on the Thali block, awaiting government approval for a license extension and a farm-out agreement with Prime Global Energies.
BW Energy has announced the discovery of an oil field in the Bourdon prospect, located in the offshore Dussafu license in Gabon. This new resource could strengthen the company's production and stimulate investment in the country's oil sector.
BW Energy has announced the discovery of an oil field in the Bourdon prospect, located in the offshore Dussafu license in Gabon. This new resource could strengthen the company's production and stimulate investment in the country's oil sector.
Tanzania has decided to postpone the allocation of 26 oil and gas exploration licences to May 2025, initially scheduled for March, to attract more investors at the Africa Energies Summit in London.
Niger is experiencing a fuel supply crisis that is disrupting the daily lives of millions. Dependence on imports and the inability of domestic production to meet demand are worsening the situation.
Niger is experiencing a fuel supply crisis that is disrupting the daily lives of millions. Dependence on imports and the inability of domestic production to meet demand are worsening the situation.
A collision between the oil tanker Stena Immaculate and the cargo ship Solong off the coast of Yorkshire caused a fire and injured 32 crew members, who were evacuated to Grimsby. An environmental risk assessment is underway.
A collision between the oil tanker Stena Immaculate and the cargo ship Solong off the coast of Yorkshire caused a fire and injured 32 crew members, who were evacuated to Grimsby. An environmental risk assessment is underway.
OPEC+ has authorized a gradual increase in Iraq's oil quota starting in April 2025, enabling the country to reach 4.11 million barrels per day by January 2026, amid strategic developments marked by the imminent reopening of the Iraq-Turkey pipeline.
OPEC+ has authorized a gradual increase in Iraq's oil quota starting in April 2025, enabling the country to reach 4.11 million barrels per day by January 2026, amid strategic developments marked by the imminent reopening of the Iraq-Turkey pipeline.
Ecuadorian president Daniel Noboa has threatened not to sign the development contract for the Sacha oil field unless a $1.5bn deposit is paid within six days by the Sino-Canadian consortium.
Venezuelan President Nicolas Maduro has warned Guyana and ExxonMobil against any oil exploration in the contested Essequibo region. He stated that Venezuela would take "all necessary measures" to stop these activities.
Venezuelan President Nicolas Maduro has warned Guyana and ExxonMobil against any oil exploration in the contested Essequibo region. He stated that Venezuela would take "all necessary measures" to stop these activities.
Petro-Victory Energy Corp. and Blue Oak Investments have reached an agreement to acquire Capixaba Energia LTDA, an integrated onshore production company in Brazil, aimed at expanding their presence in the country's oil and gas sector.
Petro-Victory Energy Corp. and Blue Oak Investments have reached an agreement to acquire Capixaba Energia LTDA, an integrated onshore production company in Brazil, aimed at expanding their presence in the country's oil and gas sector.
McDermott successfully completes EPCIC works for Shell Offshore Inc. in the Gulf of Mexico, enabling the start of oil production from the Whale platform.
McDermott successfully completes EPCIC works for Shell Offshore Inc. in the Gulf of Mexico, enabling the start of oil production from the Whale platform.
South Sudan's Minister of Petroleum, Puot Kang Chol, was arrested on the night of March 4-5, exacerbating tensions between supporters of President Salva Kiir and those of Vice President Riek Machar.
Increased competition between Dangote’s refinery and NNPC has led to a significant reduction in petrol prices in Nigeria, providing economic relief to consumers.
Increased competition between Dangote’s refinery and NNPC has led to a significant reduction in petrol prices in Nigeria, providing economic relief to consumers.
Washington has ordered Chevron to cease its operations in Venezuela by April 3, a decision that could have significant implications for the global oil market, according to analysts.
Washington has ordered Chevron to cease its operations in Venezuela by April 3, a decision that could have significant implications for the global oil market, according to analysts.
Opec+ has reaffirmed its plan for a gradual increase in oil production starting from April 2025, a decision that has led to a drop in oil prices, particularly Brent. This strategy marks a shift in the cartel’s approach.
Opec+ has reaffirmed its plan for a gradual increase in oil production starting from April 2025, a decision that has led to a drop in oil prices, particularly Brent. This strategy marks a shift in the cartel’s approach.
The US government has announced a 10% tariff on oil imports from Canada and a 25% tariff on those from Mexico, effective from March 4. This decision will directly affect the refining sector in the United States.
Predator Oil continues its work in Guercif, Morocco, with the drilling of the MOU-5 well. The goal is to assess the estimated 6 TCF reserves as part of the national effort to secure gas supply.
Predator Oil continues its work in Guercif, Morocco, with the drilling of the MOU-5 well. The goal is to assess the estimated 6 TCF reserves as part of the national effort to secure gas supply.
VAALCO continues its expansion in West Africa with the acquisition of a 70% stake in the offshore CI-705 block in Côte d'Ivoire and an ambitious plan to double its crude production in Gabon by 2026.
VAALCO continues its expansion in West Africa with the acquisition of a 70% stake in the offshore CI-705 block in Côte d'Ivoire and an ambitious plan to double its crude production in Gabon by 2026.
Ecuador has granted a concession for its main oil field, Sacha, to a consortium formed by Sinopec and New Stratus Energy. The contract, to be signed in April, aims for a significant production increase within three years.
Ecuador has granted a concession for its main oil field, Sacha, to a consortium formed by Sinopec and New Stratus Energy. The contract, to be signed in April, aims for a significant production increase within three years.

Advertising