Crude oil reserves in the United States decreased by 5.267 million barrels in the week ending October 30, 2023. This follows a decline of 2.031 million barrels in the previous week. According to data from the American Petroleum Institute (API), commercial crude oil reserves, excluding strategic reserves (SPR), have decreased by more than 64 million barrels over the last 29 weeks and have dropped by 12 million barrels since the beginning of this calendar year.
Decrease in Strategic Oil Reserves
In the week ending October 30, 400,000 barrels of crude oil were withdrawn from strategic reserves to support commercial reserves. With this reduction, the total reserves held in the SPR have decreased to 282.2 million barrels, which is 432 million barrels below its maximum capacity. The general operational minimum for oil reserves in the SPR is between 250 to 300 million barrels, and if it falls below this amount, effective oil storage and processing may not be carried out.
Read more: ADNOC Gas Signs LNG Supply Agreement with TotalEnergies
Increase in U.S. Oil Production
U.S. oil production increased to 13.992 million barrels per day for the week ending October 23. This represents an increase of 723,000 barrels compared to the previous week, which was 13.269 million barrels per day, and is also 348,000 barrels more than the same period last year. Meanwhile, Brent crude oil prices reached $104.32 per barrel at 4:25 PM Eastern Time, indicating a decrease of 0.43 percent. West Texas Intermediate (WTI) crude oil prices also rose by $0.22 to $97.24 per barrel, which is about $3 lower than the price at this time last week.
Developments in Gasoline and Diesel Reserves
In the week ending October 30, gasoline reserves increased by 1.427 million barrels. In the previous week, gasoline reserves had increased by 2.39 million barrels. According to the latest EIA data, gasoline reserves last week were 2 percent lower than the five-year average for this time of year. Additionally, diesel reserves decreased by 270,000 barrels, while they had increased by 380,000 barrels in the previous week. Diesel reserves at the beginning of this reporting period were 10 percent lower than the five-year average.
Cushing reserves, known as the delivery point for WTI crude oil futures contracts, experienced an increase of 511,000 barrels, while they had decreased by 453,000 barrels in the previous week.
Read more: Hamid Bord Emphasizes Increasing Production and Fuel Storage in Winter · Abu Dhabi National Oil Company Distributes 158 Billion Dirhams in Profits Among Subsidiaries
