U.S. crude stockpiles fell 4M barrels last week, API says

• The American Petroleum Institute reportedly shows a draw of 4.04M barrels of oil for the week ending July 22.
• Gasoline inventories reportedly show a draw of 1.06M barrels, distillate inventories show a draw of 550K barrels and Cushing inventories show a build of 1.09M barrels.
• September WTI crude oil (CL1:COM) recently traded at $95.54/bbl in electronic trading after settling Tuesday at $94.98/bbl on the New York Mercantile Exchange.
• (NYSEARCA:USO) +0.5% after-hours.

Comments

[imlongnow]

So, with the SPR included, the net oil and product drop was approx 12 mil barrels in one fricken week ( assuming 6 SPR weekly release) ....let's see what EIA says tomorrow.

[BeneGesserit]

@imlongnow EIA will be similar unless they try to smooth the error from the 7/8 report over several weeks. The 'build' of roughly 14 million barrels a couple was almost certainly errant and now being corrected. The massive build a couple weeks ago never happened nor did this massive draw. Someone needs to get to the source of these errors and post retroactive corrections in the EIA and API data. There were so many red flags in the report but the market took it and ran the longs out anyways.

[aretailguy]

What will Biden do when SPR is empty?

[Maddog1529]

@aretailguy Haven't you ever heard of rainbow unicorns....come on!

[Cryptoanalytic]

@aretailguy Probably choose that time to escalate w Putin.

[BeneGesserit]

@Cryptoanalytic Seems like they are pivoting to escalating with China. I feel sorry for the people of Taiwan that will bear the biggest burden from repeated geopolitical miscalculations.

[DoubleBacon]

Is it possible to deplete the US SPR??

[rrb1981]

@DoubleBacon There is a finite amount of crude in the SPR, which are mostly salt domes (storage caverns).

The SPR's original intent was to supply crude for the military in times of war should it be unavailable. The release of 180 million barrels is no doubt helping lower prices. The question we should be asking is, what happens when they fill it back up? Will they spread it out and perhaps add just .5 million bpd over the course of a year, or perhaps .25 million bpd over 2 years....or more likely, they'll simply not fill it back up.

[hector.padillamejia]

@rrb1981 they have to fill it back at some point, especially with countries weapon using energy sources !

[Downtown10]

@DoubleBacon Far from defending Biden, which my moral compass would never allow me to do, the SPR is no longer needed. We should drain it. It was initiated so we could never again be held hostage again as we were by the 70’s Arab oil embargo. We are now (or we were under Trump) net energy independent and no longer in danger of that happening again. We do need a strategic reserve of rare earth metals, basic pharmaceutical ingredients, as well as a few other essentials we are currently reliant on China for, but our politicians are so simple-minded that they can only at best solve a previous crisis rather than looking to the future to prevent the next one.

[ziggyzig]

So much for fake demand destruction

[cenc]

all the SPR release is doing is masking the crude production declines. go back and subtract 6 million barrels (and drips) a week from all the storage reports. There has not been a single week where there was increase in oil storage. sooner rather than later, everyone is going to panic when the music stops.

[jstone02879]

@cenc can we also add the 2.84bpd that OPEC is short of their target output to alleviate the overall pricing pressure? As of June, OPEC is 320% compliant with is production quotas suggesting the production gap is widening between target and actual production.

[idahoradm]

@cenc it’s to get us past the mid terms. They’ll probably stop depleting the SPR after the red wave of republicans are seated and blame them for the rise in prices…

[Golfsohard]

Biden administration is having a nice time celebrating their fleeting decline in gas prices meanwhile SPR is being depleted at record levels, china is locked down with covid, and we have had a near quiet atlantic hurricane season thus far...enjoy it while it lasts...meanwhile, natty gas is exploding again this month despite a shut in at the Freeport LNG export facility which is temporarily increasing domestic natty gas supplies....we are in for an emperor has no clothes is situation in a few months as the ESG/woke energy policy creates an energy induced recession in Europe and then eventually here in the US...energy prices higher for longer i'm afraid

[pro8]

@Golfsohard Another small richard heard from....

[Ruffdog]

@Golfsohard And when Freeport LNG is back at full export capacity, by the end of the year, that will add another $2-4 to NG!

[Ruffdog]

@Golfsohard The 1 million b/d draw from the SPR is about equal to the US net export of crude and crude products so basically what is happening is that we are drawing crude from the SPR, refining it and selling it to the world.