Rising Oil Prices Driven by Depleted US Crude Inventories

US commercial crude oil inventories have been depleting, with a decline of 34 million barrels since mid-July, signaling a tightening market and driving up spot prices and calendar spreads. The drawdown in inventories has particularly affected stocks in Cushing, Oklahoma, the delivery point for NYMEX US crude futures. This depletion, combined with production cuts by Saudi Arabia and Russia, has contributed to the rise in oil prices. US net crude imports remain subdued, while the US Department of Energy has shifted from strategic inventory liquidation to accumulation, further tightening the availability of crude in the commercial market and adding upward pressure on prices and spreads.