The American Petroleum Institute (API) estimated that crude oil inventories in the United increased by 1 million barrels for the week ending January 17. Analysts surveyed by Reuters had expected the API to report a draw of around 1.6 million barrels. 

For the week prior, the API reported a draw of 2.6-million-barrel in U.S. crude oil inventories in the midst of build season, while product inventories saw a hefty build for multiple weeks in a row.

In 2024, crude oil inventories dropped by more than 12 million barrels, according to the API’s inventory data, with the downward trend continuing beyond the new year.  

Earlier this week, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by 0.3 million barrels as of January 17. SPR inventories are now at 394.6 million barrels, a figure that is still 239 million less than the inventory when President Biden took office. 

At 4:52 pm ET, Brent crude was trading down $0.38 (-0.48%) on the day at $78.91. The U.S. benchmark WTI was also trading down on the day by $0.45 (-0.59%) at $75.73—more than $2 per barrel under last week’s level.  

Gasoline inventories rose this week by 3.2 million barrels after last week’s large 5.39-million-barrel increase. As of last week, gasoline inventories are slightly below the five-year average for this time of year, according to the latest EIA data. 

Distillate inventories rose by 1.9 millionbarrels, which follows last week’s large 4.88-million-barrel increase. Distillate inventories were about 4% below the five-year average as of the week ending January 10, the latest EIA data shows. 

Cushing inventories—the benchmark crude stored and traded at the key delivery point for U.S. futures contracts in Cushing, Oklahoma—rose by 500,000 barrels, according to API data, after rising by 573,000 barrels in the previous week.

By Julianne Geiger for Oilprice.com

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