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:

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.

The expansion of the global oil and gas fishing market is accelerating on the back of offshore projects, with annual growth estimated at 5.7% according to The Insight Partners.
The Competition Bureau has required Schlumberger to divest major assets to finalise the acquisition of ChampionX, thereby reducing the risks of market concentration in Canada’s oilfield services sector. —
Saturn Oil & Gas Inc. confirms the acquisition of 1,608,182 common shares for a total amount of USD3.46mn, as part of its public buyback offer in Canada, resulting in a reduction of its free float.
OPEC slightly adjusts its production forecasts for 2025-2026 while projecting stable global demand growth, leaving OPEC+ significant room to increase supply without destabilizing global oil markets.
Talks between European Union member states stall on the adoption of the eighteenth sanctions package targeting Russian oil, due to ongoing disagreements over the proposed price ceiling.
Three new oil fields in Iraqi Kurdistan have been targeted by explosive drones, bringing the number of affected sites in this strategic region to five in one week, according to local authorities.
An explosion at 07:00 at an HKN Energy facility forced ShaMaran Petroleum to shut the Sarsang field while an inquiry determines damage and the impact on regional exports.
The Canadian producer issues USD 237 mn in senior notes at 6.875 % to repay bank debt, repurchase USD 73 mn of 2027 notes and push most of its maturity schedule to 2030.
BP revised upwards its production forecast for the second quarter of 2025, citing stronger-than-expected results from its US shale unit. However, lower oil prices and refinery maintenance shutdowns weighed on overall results.
Belgrade is engaged in complex negotiations with Washington to obtain a fifth extension of sanctions relief for the Serbian oil company NIS, which is majority-owned by Russian groups.
European Union ambassadors are close to reaching an agreement on a new sanctions package aimed at reducing the Russian oil price cap, with measures impacting several energy and financial sectors.
Backbone Infrastructure Nigeria Limited is investing $15bn to develop a 500,000-barrel-per-day oil refinery in Ondo State, a major project aimed at boosting Nigeria’s refining capacity.
The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.