Crude Inventories Drop By 3.2 Million Barrels; WTI Oil Tests The $65.00 Level

On July 23, 2025, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories decreased by -3.2 million barrels from the previous week, compared to analyst forecast of -1.6 million barrels. At current levels, crude inventories are 9% below the five-year average for this time of the year.

Total motor gasoline inventories declined by -1.7 million barrels from the previous week, compared to analyst forecast of -0.9 million barrels. Distillate fuel inventories increased by +2.9 million barrels.

U.S. crude oil imports declined by 403,000 bpd, averaging 6 million bpd. Over the past four weeks, crude oil imports averaged 6.3 million bpd. Declining imports put pressure on crude inventories.

Strategic Petroleum Reserve declined from 402.7 million barrels to 402.5 million barrels.

Domestic oil production pulled back from 13.375 million bpd to 13.275 million bpd. Domestic production continues to decline as companies react to lower oil prices, which may serve as a positive catalyst for oil markets.

WTI oil remained stuck near session lows after the release of the EIA report. Currently, WTI oil is trying to settle below the $65.00 level. Falling crude inventories and declining domestic production did not provide material support to WTI oil as traders were worried that trade wars would hurt global demand.

Brent oil traded near the $68.00 level as traders reacted to the report.

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