Crude oil prices rose after the Energy Information Administration reported a 2.2 million barrel inventory draw for the week, while gasoline stocks added 1 million barrels. The American Petroleum Institute estimated a crude oil inventory draw of 1.6 million barrels and noted that stocks at Cushing, Oklahoma, were nearing the minimum operating level. Concerns about supply and the potential for compromised quality due to continued draws at Cushing contributed to the bullish effect on prices.
Stockpiles at the Cushing storage hub in Oklahoma are at risk of reaching their lowest level in almost a decade, potentially leading to a boost in crude prices and supporting the goal of reaching $100 oil by the end of the year. The decline in inventories reflects the tightening global market and the scramble for near-term supplies. Official estimates will be released this week.
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.
