Full Breakdown
U.S. Crude Inventories Shrink Sharply as Hormuz Flows Remain Limited
7/1/2026, 4:48:47 AM
Core Decline of U.S. Crude Stocks
The American Petroleum Institute (API) estimated that U.S. crude oil inventories fell by 6.072 million barrels in the week ending June 26, following a 765,000-barrel draw the week before. Over the past eleven weeks, commercial crude inventories (excluding the Strategic Petroleum Reserve) have shed a cumulative 59.4 million barrels. Year-to-date, total U.S. crude stocks are down 8 million barrels.
Strategic Petroleum Reserve Drawdown
During the same week, the Strategic Petroleum Reserve (SPR) released an additional 5.5 million barrels, bringing its balance to 325.7 million barrels—the lowest level in more than four decades and 399 million barrels below maximum capacity. The current SPR level remains lower than the 2023 low recorded during the Biden Administration’s large-scale drawdown.
Production Gains and Hormuz Flow Resumption
U.S. crude production rose to 13.819 million barrels per day (bpd) for the week ending June 19, up from 13.806 million bpd the prior week and 384,000 bpd above the same period a year earlier, according to the Energy Information Administration (EIA). At 4:36 p.m. ET on Tuesday, flows from the Strait of Hormuz were reported as partially resumed.
Fuel Product Inventories
Gasoline inventories declined by 2.106 million barrels in the week ending June 26 after a 1.238 million-barrel increase the week before, leaving stocks 5 % below the five-year average for this time of year. Distillate inventories rose by 2.9 million barrels in the same week, following a 1.447 million-barrel gain the week prior, yet remain 10 % below the five-year average. The Cushing hub inventory, the delivery point for WTI futures, increased by 503,000 barrels after a 982,000-barrel decline the week before.
Market Price Response
Brent crude traded at $73.40 per barrel, down 0.69 % on the day, while West Texas Intermediate (WTI) fell to $70.06 per barrel, a 0.98 % decline and roughly $3 per barrel lower than the previous Tuesday.
Official Data Releases
The API provided the weekly crude inventory estimate, and the EIA supplied the production figures and fuel-product inventory data. Both agencies serve as the primary sources for the quantitative metrics reported.
Conflicting Timing and Data Gaps
API inventory data cover the week ending June 26, whereas EIA production data pertain to the week ending June 19, creating a temporal mismatch that limits direct week-by-week correlation. No additional government statements or independent verification are included in the source material.
Outlook and Potential Implications
Continued inventory drawdowns, a still-low SPR balance, and only partial resumption of Hormuz flows coincide with the modest price declines observed in Brent and WTI markets.
