US Crude Inventories Dip, Surprising Analysts

US crude oil inventories fell by 2.031 million barrels, contrary to expectations, according to the API.

The American Petroleum Institute reported a decline in US crude oil inventories for the week ending October 23, marking a deviation from analyst forecasts. This follows a significant drop of 4.93 million barrels in the prior week, indicating a trend of inventory reductions. Over the past 28 weeks, commercial crude oil inventories have decreased by more than 58 million barrels, though they remain 7 million below the level at the start of the year. The Strategic Petroleum Reserve (SPR) has played a role in maintaining inventory levels, with 100,000 barrels transferred to commercial inventories, reducing the SPR to 282.6 million barrels. This is still 431 million barrels below its maximum capacity, with the operational minimum for the SPR typically between 250-300 million barrels.