Crude Oil Inventories Build Amid Peace Deal Rumors

US crude oil inventories increased by 2.69 million barrels in the week ending July 30, according to data from the American Petroleum Institute (API). This is despite analyst expectations for a 2 million barrel draw.

The API also reported that commercial crude oil inventories excluding the Strategic Petroleum Reserve (SPR) have lost over 58 million barrels over the last sixteen weeks. However, US crude inventories are down only 7.2 million for the year, kept in check by draws from the SPR.

For the week ending July 31, another 2.9 million barrels left the SPR, bringing the new total to 304.8 million barrels, far lower than the 2023 low reached during the Biden Administration’s huge drawdown and the lowest level in over 43 years.