Fri. Sep 22nd, 2023
    Strong Crude Draw and Falling Inventories Support Oil Prices

    The American Petroleum Institute (API) has reported a significant draw in U.S. crude inventories, offsetting last week’s build. Analysts were expecting a smaller draw, but the data shows a net draw in crude inventories since April. On the other hand, crude oil inventories in the Strategic Petroleum Reserve (SPR) rose slightly, but still remain at a near 40-year low.

    Oil prices were trading up ahead of the API data release. Brent crude was up by more than $2.50 per barrel compared to the previous week, while West Texas Intermediate (WTI) was also trading higher. Gasoline inventories saw a rise, but are still below the five-year average for this time of year. Distillate inventories fell, offsetting the build in the previous week.

    Furthermore, Cushing inventories also fell significantly this week, leaving just over 22 million barrels. This is another decrease after a drop in inventories last week.

    Overall, the draw in crude inventories and falling inventories at Cushing support oil prices.

    – API
    – Department of Energy (DoE)

    – American Petroleum Institute (API): A trade association that represents the oil and natural gas industry in the United States.
    – U.S. crude inventories: The amount of crude oil stored in the U.S.
    – Strategic Petroleum Reserve (SPR): The U.S. government stockpile of emergency crude oil.
    – Brent crude: A major trading classification of sweet light crude oil.
    – West Texas Intermediate (WTI): The underlying commodity for futures contracts on light, sweet crude oil.