U.S. crude oil inventories fell for a 10th straight week last week as demand surged, pushing total stockpiles to their lowest level in over 40 years as the Iran war continues to upend global energy markets, the U.S. Energy Information Administration said on Wednesday.
Total crude inventories, including commercial stocks and those in the Strategic Petroleum, plunged by 17.2 million to 758.5 million barrels last week, its lowest since March 1985, the EIA said.
The total stocks, including those from the strategic petroleum reserve, have fallen by 96.25 million barrels since the start of the Iran war, as countries around the globe have called on U.S. oil and products to fill supply gaps.
Stocks excluding those in the governement’s emergency reserve fell by 8.3 million barrels to 418.2 million barrels in the week to June 12, the EIA said, compared with analysts’ expectations in a Reuters poll for a 4.6 million-barrel draw.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.6 million barrels in the week, the EIA said. Inventories at the key storage hub are now at 20.03 million barrels, their lowest level since 2014 and near operational lows. Oil futures extended gains following the report, but later retreated as the market weighed the US-Iran deal and a warning from the IEA over a looming supply glut next year after recovering from the Strait of Hormuz closure. Global Brent crude futures were trading at $79.42 a barrel, up 46 cents at 12:07 p.m. ET (1607 GMT), while U.S. West Texas Intermediate futures were up 59 cents to $76.64 a barrel.
“Cushing showing another solid draw, taking it precipitously closer to operationally low levels. Our midweek drone data show Cushing drawing through the first half of this week, getting ever closer to the precipice,” said Matt Smith, an analyst with ship tracking firm Kpler.
Refinery crude runs rose by 230,000 barrels per day in the week, the EIA said, while refinery utilization rates rose by 1.4 percentage points in the week to 96.7.
U.S. gasoline stocks fell by 906,000 barrels in the week to 214.2 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 1 million-barrel draw. In the Midwest and on the West Coast, utilization rates jumped to their highest level since 2023.
Total product supplied, a proxy for demand, rose by 85,000 barrels last week to 20.685 million barrels. Gasoline consumption jumped by 481,000 barrels to 9.21 million barrels.
Distillate stockpiles, which include diesel and heating oil, rose by 1 million barrels in the week to 103.1 million barrels, versus expectations for a 470,000-barrel drop, the EIA data showed.
Net U.S. crude imports fell last week by 241,000 barrels per day, EIA said, while U.S. crude oil exports declined by 513,000 barrels to 4.33 million barrels per day.
(Reporting by Liz Hampton in Denver; Editing by Chizu Nomiyama)