U.S. Oil Inventories Jump as Cushing Stocks Keep Falling

U.S. crude oil inventories experienced a significant increase of 7.14 million barrels during the week ending September 11, according to the American Petroleum Institute. In contrast, the previous week saw a decline of 300,000 barrels. Commercial crude oil inventories, excluding the Strategic Petroleum Reserve (SPR), have dropped over 41 million barrels over the past 22 weeks, while U.S. crude inventories have risen by nearly 10 million barrels in the year.

The SPR's inventory stood at 285 million barrels as of September 11, which is 446 million barrels short of its maximum capacity. The SPR's minimum operational level is typically between 250-300 million barrels. U.S. production for the week ending September 4 increased to 13.947 million barrels per day (bpd), up from 13.862 million bpd the previous week and 452,000 bpd compared to the same period last year.

Brent crude prices were up 2.84% to $108.68 per barrel by 2:44 PM ET on Wednesday, while West Texas Intermediate (WTI) prices rose by $3.83 per barrel, or 3.70%, to $107.38 per barrel, a 11% increase from the previous week. Gasoline inventories expanded by 1.46 million barrels in the week ending September 11, after declining by 1.9 million barrels the week prior.

Gasoline inventories were also 5% below the five-year average for this time of year, according to the latest data from the Energy Information Administration (EIA). Distillate inventories rose by 1.61 million barrels, following a 2-million-barrel increase the week before. Distillate inventories were 13% below the five-year average heading into the current reporting period, as per EIA data.

Cushing inventory, held at the delivery hub for the WTI Crude futures contract, decreased by 246,000 barrels over the reporting period, following a 300,000 barrel drop in the previous week.