US Crude Oil Inventories Plummet to Multi-Year Lows

US commercial crude oil inventories plummeted to multi-year lows after a surprise drop of 7.2 million barrels, according to the Energy Information Administration (EIA). This significant decline brought the total stockpiles excluding the Strategic Petroleum Reserve to 404.5 million barrels as of July 24.

The sharp draw in inventory far exceeded analysts' expectations of a 1.3 million barrel decrease. The EIA report noted that refineries boosted their crude processing by 271,000 barrels per day during the week, while exports increased and net US imports declined.

As a result, oil prices surged higher, with Brent crude climbing 7.5% to $90.42 a barrel and West Texas Intermediate rising 7.5% to $85.22.