Crude Inventories Surge as SPR Releases Oil

The US crude oil inventories rose by 4.2 million barrels in the week ending August 21, according to the American Petroleum Institute (API). This is higher than the expected 1.9 million-barrel build.

The commercial crude oil inventories excluding the Strategic Petroleum Reserve (SPR) have lost over 45 million barrels in the last nineteen weeks, while US crude inventories are up 5.8 million for the year. The SPR has been drawing down to aid these commercial inventories, releasing another 3.7 million barrels for the week ending August 21.

The total inventory held in the SPR is now at 289.7 million barrels, which is 442 million barrels shy of its maximum capacity. Analysts consider the operational minimum for oil in the SPR to be between 250-300 million barrels, below which the reserve may struggle to pump and process oil efficiently.