Crude Inventories Drop By 3.9 Million Barrels; WTI Oil Tests Session Lows

On July 16, 2025, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by -3.9 million barrels from the previous week, compared to analyst forecast of -1.8 million barrels. At current levels, crude inventories are about 8% below the five-year average for this time of the year.

Total motor gasoline inventories increased by +3.4 million barrels, compared to analyst forecast of -2.7 million barrels. Distillate fuel inventories grew by +4.2 million barrels from the previous week.

U.S. crude oil imports increased by 366,000 bpd, averaging 6.4 million bpd. Over the past four weeks, crude oil imports averaged about 6.3 million bpd.

Strategic Petroleum Reserve decreased from 403.0 million barrels to 402.7 million barrels as U.S. did not buy oil for strategic reserves.

Domestic production declined from 13.385 million bpd to 13.375 million bpd. Domestic production continues to move lower due to the pullback in the oil markets.

WTI oil tested session lows after the release of the EIA report. Currently, WTI oil is trying to settle below the $65.50 level. Traders focus on rising gasoline inventories, which serve as a bearish catalyst for the market.

Brent oil pulled back below the $68.00 level as traders reacted to EIA data.

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