SPR Sinks Toward Operational Minimum as U.S. Crude Inventories Build
The American Petroleum Institute (API) estimated that crude oil inventories in the United States rose by 4.2 million barrels in the week ending August 21. Analysts had expected a 1.9 million-barrel build. In the week prior, US crude oil inventories fell by 328,000. Commercial crude oil inventories excluding the SPR have lost just over 45 million barrels over the last nineteen weeks, with US crude…
The U.S. crude oil inventories have seen a significant build-up, with the American Petroleum Institute estimating a rise of 4.2 million barrels in the week ending August 21, surpassing analysts' expectations. The Strategic Petroleum Reserve (SPR) has been drawing down to aid commercial inventories, with another 3.7 million barrels leaving the reserve in the week ending August 21, bringing the total SPR inventory to 289.7 million barrels.
This level is 442 million barrels below its maximum capacity, and experts consider 250-300 million barrels as the operational minimum for efficient pumping and processing. The SPR's current inventory level is also highlighted in comparison to the five-year average, indicating a substantial increase in commercial inventories while distillate and gasoline inventories have fallen below their five-year averages.
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