US crude oil inventories increased by 4.2 million barrels in the week ending August 21st, significantly exceeding market expectations for a 1.9 million-barrel build and reversing the prior week’s 328,000-barrel draw. Over the past 19 weeks, commercial crude inventories excluding the SPR have fallen by just over 45 million barrels, yet they remain 5.8 million barrels higher on a year-to-date basis.
Separately, a further 3.7 million barrels were withdrawn from the Strategic Petroleum Reserve, reducing total SPR holdings to 289.7 million barrels, close to the widely cited operational minimum range of 250–300 million barrels. At Cushing, Oklahoma, the key delivery hub, crude stocks rose by 1 million barrels, following a 1.44 million-barrel decline the week before.
US crude production edged up to 13.83 million barrels per day from 13.805 million barrels per day, an increase of 503,000 barrels per day compared with the same period a year earlier. On the refined products side, gasoline inventories fell by 3.2 million barrels, while distillate stocks declined by 500,000 barrels.
