The American Petroleum Institute (API) reported a large build this week for crude oil of 5.618 million barrels. U.S. crude inventories have grown by roughly 31 million barrels so far this year, according to API data, while the U.S. Strategic Petroleum Reserves fell by more than six times that figure, at 197 million barrels.
The build in crude oil inventories was partially due to the Department of Energy’s release of 3.6 million barrels from the Strategic Petroleum Reserves in the week ending November 4, leaving the SPR with 396.2 million barrels.
In the week prior, the API reported a major surprise draw in crude oil inventories of 6.53 million barrels.
WTI prices slipped on Tuesday. At 1:45 p.m. EST, WTI was trading down $1.67 (-1.82%) on the day at $90.12 per barrel. This is an increase of roughly $2 per barrel from the prior week. Brent crude was trading down $1.40 (-1.43%) on the day at $96.52—an increase of $2 per barrel on the week.
U.S. crude oil production continues to languish below 12.1 million bpd. For the week ending October 28, U.S. crude oil production fell 100,000 bpd at 11.9 million bpd, according to the latest weekly EIA data, just a 200,000 bpd rise from the levels seen at the start of the year, and still a 1.2 million bpd shortfall from the levels seen at the start of the pandemic.
The API reported a build in gasoline inventories this week of 2.553 million barrels for the week ending November 4, compared to the previous week’s 2.64 million-barrel draw.
Distillate stocks saw a draw this week of 1.773 million barrels, compared to last week’s 865,000-barrel increase.
Cushing inventories fell 1.848 million barrels in the week to Nov 4. In the week prior, the API saw a Cushing increase of 883,000 barrels.
By Julianne Geiger for Oilprice.com
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