Commercial inventories excluding the Strategic Petroleum Reserve have shed over 58 million barrels in the last 28 weeks. Despite this aggressive drawdown, total holdings remain only 7 million barrels below year-start levels, bolstered by ongoing releases from the SPR. During the latest reporting period, 100,000 barrels were moved from the reserve, leaving the SPR at 282.6 million barrels—a figure hovering near the operational minimum of 250 million barrels required for efficient processing.
US Crude Reserves Dwindle as Market Prices Retreat
The American Petroleum Institute reported a 2.031 million-barrel drop in US crude oil inventories for the week ending October 23. This latest decline follows a sharper 4.93 million-barrel draw the previous week, as the nation continues to rely on strategic reserves to stabilize domestic commercial supply levels.
Production metrics reflect a cooling trend, with output slipping to 13.269 million barrels per day for the week ending October 16, down 360,000 barrels from a year ago. Market response to these supply shifts remained cautious on Wednesday afternoon. Brent crude traded at $114.25, reflecting a 1.35% decline, while WTI fell 2.29% to $100.51 per barrel. Meanwhile, refined products saw a slight build, with gasoline inventories rising by 2.39 million barrels and distillates increasing by 380,000 barrels, providing a minor offset to the broader crude deficit.
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