US crude inventories fell 7.2 million barrels in the week ending July 24, taking commercial stockpiles to 404.5 million barrels, 7% below the five-year average for this time of year. Crude futures climbed sharply the same morning after the United States and Saudi Arabia carried out airstrikes against Iran-aligned militias in Iraq.
Crude oil inventories in the United States fell by 7.2 million barrels during the week ending July 24, according to data the U.S. Energy Information Administration released on Wednesday. The decrease brings commercial stockpiles to 404.5 million barrels, now 7% below the five-year average for this time of year.
The draw ran far past what the market looked for: Investinglive put the estimate at a decline of 1.272 million barrels. The EIA release also followed API figures published a day earlier, which put the crude draw at 3.296 million barrels.
Strikes on Iran-aligned militias push Brent and WTI higher
Crude futures were trending sharply upward in early morning trade after the United States and Saudi Arabia carried out airstrikes against Iran-aligned militias in Iraq in response to drone attacks targeting Saudi oil infrastructure. At 9:18 a.m. in New York, Brent futures traded at $90.03 per barrel, up $5.94 (+7.06%) on the day but down roughly $3 per barrel from the same time last week. WTI traded up $5.51 per barrel (+6.95%) at $84.77 on Wednesday morning.
Two hourly averages bracket WTI
Investinglive put WTI at $85.20, up nearly $6.00 on the day, or about 7.4%, after President Trump vowed to "hit Iran hard". Prices had fallen to $77.88 one day earlier, where buyers emerged at a key swing support level dating back to July 17.
The price now trades between two key moving averages — the 200-hour at $84.50 and the 100-hour at $85.46. If sellers defend the 100-hour line, the price could rotate back toward support near $83.42. A decisive break above it would open the door for a move toward $88.00, with the 100-day moving average at $90.08 becoming the next major upside target.
Distillate stocks build as demand slips
For total motor gasoline, the EIA reported inventories increased slightly, compared with the week prior's 800,000-barrel build. Average daily gasoline production increased to 9.9 million barrels, while middle distillate inventories increased by 1.1 million barrels with production rising to an average of 5.4 million barrels daily.
Total products supplied — a proxy for U.S. oil demand — averaged 20.3 million barrels per day over the last four weeks, down 2.3% compared with the same period last year. Gasoline demand averaged 8.9 million barrels per day over the last four weeks, while the distillate four-week average supplied averaged 3.7 million barrels, up 4.7% year over year.
Sources: Oilprice.com, Investinglive
Trading involves risk.
Risk Disclaimer
