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US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, took another dive last week, dropping by 3.4 million barrels for the week ending July 26, 2024. This marks the fifth consecutive week of inventory declines, thanks to robust exports, according to the latest Energy Information Administration (EIA) report.

With US crude oil inventories now at 433.0 million barrels, they sit about 4% below the five-year average for this time of year. This continued drawdown underscores the strong global appetite for US crude, as exports surged to over 4.9 million barrels per day during the reporting week.

Despite the strong export numbers, US refinery utilization rates fell by 1.5% from the previous week, down to 90.1%.

Adding to the mix, the EIA reported a decrease in total motor gasoline inventory—a key gauge of demand health—which fell by 3.7 million barrels. These gasoline inventories are now about 3% below the five-year average, hinting at steady consumer demand.

Meanwhile, local crude production held steady at 13.3 million barrels per day, maintaining its consistent output.

Written by: Rochelle Nguyen