Oil Prices Rise: US Inventories Fall
- crude oil inventories experienced a significant draw this week, according to the American Petroleum Institute (API).
- crude oil inventories are up by more than 21 million barrels as the start of the year, based on calculations from API data.
- The Department of energy (DoE) reported earlier in the week that the Strategic Petroleum Reserve (SPR) increased by 800,000 barrels, reaching 401.3 million barrels as of May 23.
U.S. crude oil inventories tumbled this week, sparking a surprising decline of 4.236 million barrels, according to API estimates. This significant draw, contrasting sharply with expectations of a 1 million barrel increase, sends ripples through the energy sector. Gasoline inventories also dipped, while distillate inventories saw an increase. Amidst these shifts, Cushing inventories also declined. This data underscores the dynamic nature of the oil market and its response to changing supply and demand fundamentals. Despite current fluctuations, U.S. crude oil inventories remain up by over 21 million barrels sence the year’s start. Stay informed with news Directory 3 for breaking developments and in-depth analyses. Will these inventory changes reshape the trajectory of oil prices? Discover what’s next in the coming weeks.
US Crude Oil Inventories See Surprise Decline, API Reports
Updated June 01, 2025
U.S. crude oil inventories experienced a significant draw this week, according to the American Petroleum Institute (API). The API estimated a decrease of 4.236 million barrels for the week ending May 23. This contrasts with analysts’ expectations of a 1 million barrel increase. The previous week saw an increase of 2.499 million barrels.
Despite this week’s draw, U.S. crude oil inventories are up by more than 21 million barrels as the start of the year, based on calculations from API data.
The Department of energy (DoE) reported earlier in the week that the Strategic Petroleum Reserve (SPR) increased by 800,000 barrels, reaching 401.3 million barrels as of May 23. while still below pre-drawdown levels under the Biden Administration, SPR replenishment efforts have gained momentum recently.
Gasoline inventories also saw a decrease, falling by 528,000 barrels in the week ending May 23, following a prior week’s drop of 3.238 million barrels. EIA data indicates that gasoline inventories were already 2% below the five-year average for this period.
Distillate inventories, however, increased by 1.295 million barrels this week, after a decrease of 1.401 million barrels the previous week. As of May 16, distillate inventories were 16% below the five-year average, according to the latest EIA data.
Cushing inventories, a key delivery point for U.S. futures contracts in Cushing, Oklahoma, decreased by 342,000 barrels, according to API data.This follows a 443,000 barrel decrease the previous week.
What’s next
Market watchers will be closely monitoring official government data to confirm the API’s figures and assess the ongoing impact on oil price trends.