20.06.2025 16:51

Last week witnessed an unexpected and substantial decrease in US crude oil inventories, reaching a staggering 11.5 million barrels, according to Carsten Fritsch, a commodity analyst at Commerzbank. This marks the most significant weekly drop in almost a year, a development that has sent ripples through the market.

The dramatic reduction stemmed primarily from a considerable decrease in net imports, a decline of 1.8 million barrels per day. This decrease was coupled with a simultaneous increase in exports, a noteworthy trend given the recent narrowing of the price differential between West Texas Intermediate (WTI) and Brent crude. The reduced price gap has lessened the price competitiveness of US light oil, raising questions about the sustainability of high export levels.

Fritsch further pointed out that the price difference between WTI and Brent reached a mere $2.5 per barrel earlier this week—the lowest point this year. This narrowing price gap suggests a potential reversal of the recent inventory drawdown, hinting at a future increase in stock levels.

Currently, US crude oil inventories are 10% lower than the five-year average, signifying a constricted supply situation within the United States. This tightness is even more pronounced in Cushing, Oklahoma, the delivery point for WTI, where inventories are a remarkable 40% below the five-year average. This significant shortfall in Cushing is directly contributing to WTI prices converging with Brent crude prices. The situation indicates a tightening market and a potential shift in the dynamics of the global oil trade, as reported by internet sources.