US commercial crude stockpiles fell 7.2 million barrels in the week ending July 24, leaving them 7% below the five-year average. Brent futures jumped 7.06% the same morning after the United States and Saudi Arabia struck Iran-aligned militias in Iraq.
US crude oil inventories decreased by 7.2 million barrels during the week ending July 24, according to new data from the U.S. Energy Information Administration released on Wednesday. That brings commercial stockpiles to 404.5 million barrels, now 7% below the five-year average for this time of year. The EIA release follows API figures published a day earlier, which reported a 3.296 million-barrel fall in crude inventories over the period.
Airstrikes in Iraq send Brent to $90.03
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 also traded up on the day, rising $5.51 per barrel (+6.95%) to $84.77 on Wednesday morning.
Gasoline and distillate stocks build
For total motor gasoline, the EIA reported that inventories increased slightly, compared with the week prior's 800,000-barrel build. Average daily gasoline production increased to 9.9 million barrels.
Middle distillate inventories increased by 1.1 million barrels, with production increasing to an average of 5.4 million barrels daily. Those distillate stocks now sit 9% below the five-year average.
Four-week demand trails last year
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 same four weeks. The distillate four-week average supplied averaged 3.7 million barrels, up 4.7% year over year.
Source: Investing.com
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