According to the Energy Information Administration, crude stockpiles in the United States fell to their lowest level since January 2020 last week, as imports and production declined. In the week ending July 23, crude inventories (USOILC=ECI) declined by 4.1 million barrels to 435.6 million barrels, exceeding analysts’ estimates of a 2.9 million barrel drop in a Reuters poll.
Stocks of US crude futures (USOICC=ECI) at the Cushing, Oklahoma, delivery hub decreased by 1.27 million barrels to 35.4 million barrels, the lowest since January 2020, according to the Energy Information Administration. In the Midwest as a whole, inventories dipped to their lowest level since October 2018. Oil prices rose as a result of the decrease, with U.S. crude futures topping $72 per barrel.
Data revealed that distillate stockpiles (USOICC=ECI), which include diesel and heating oil, fell by 3.1 million barrels, beating estimates for a decline of 435,000 barrels. Matt Smith, director of commodity research at ClipperData, said, “A rebound in implied demand for both gasoline and distillates, as well as lower refinery runs, has encouraged decent inventory draws for both.” It is considered to be a rebound of the implied demand for distillate and gasoline, both at the same time.