Oil Jumps on Significant Crude Inventory Draw

Crude oil inventories in the United States fell by 9.163 million barrels for the week ending June 28, according to The American Petroleum Institute (API), after analysts had expected a 150,000 barrel draw.

For the week prior, the API reported a 914,000 barrel build in crude inventories.

On Tuesday, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by 0.4 million barrels as of June 28. Inventories are now at 372.6 million barrels—the highest level since December 2022, but still well below the 656 million barrels in inventory in June 2020.

Oil prices were trading up ahead of the API data release on Tuesday. At 10:17 am ET, Brent crude was trading up $0.34 on the day at $86.94—and up about $2 per barrel from this time last week. The U.S. benchmark WTI was also trading up on the day at +0.30% to $83.63—up nearly $3 per barrel from this time last week.

Gasoline inventories rose this week, by 2.468 million barrels, after last week’s 3.843-million-barrel increase. As of last week, gasoline inventories are on par with the five-year average for this time of year, according to the latest EIA data.

Distillate inventories fell this week by 740,009 barrels, compared to last week’s 1.178-million-barrel dip. Distillates were about 9% below the five-year average for the week ending May June 21, the latest EIA data shows.

Cushing inventories rose this week, according to API data, by 404,000 barrels after falling by 350,000 barrels in the previous week.

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