US Crude, Gasoline Inventories Continue to Sink

Key Points:

• The American Petroleum Institute (API) reported a 2.8 million barrel decline in U.S. crude oil inventories for the week ending May 22, following a 9.1 million barrel drop the previous week, though inventories have increased by 22 million barrels so far this year.
• The U.S. Strategic Petroleum Reserve (SPR) saw a significant drawdown of 9.1 million barrels in the same week, reducing the total to 365.1 million barrels, the lowest since April 2024 and well below maximum capacity.
• U.S. crude oil production slightly decreased to 13.702 million barrels per day for the week ending May 15, a minor drop from the previous week but up 310,000 barrels per day compared to last year.
• Oil prices fell sharply, with Brent crude down 4.14% to $95.46 and WTI crude down 4.51% to $89.66, marking substantial declines since the previous Tuesday amid market optimism about a quick supply balance despite contrary evidence.
• Gasoline inventories dropped by 3.199 million barrels, continuing a downward trend and sitting 5% below the five-year average, while distillate inventories rose by 1.1 million barrels but remain 9% below the five-year average; Cushing crude inventories also declined by 2.875 million barrels.