Summary of EIA Report on US Oil Inventories
Date: July 29, 2026
Overview
The latest report from the US Energy Information Administration (EIA) has revealed a significant and unexpected drop in US crude oil inventories, which has further fueled oil prices. The decline in inventories is attributed to a combination of reduced imports, increased exports, and high refinery throughput.
Key Data from the EIA Report (Week Ending July 24)
- Commercial Crude Oil Inventories: Decreased by 7.2 million barrels to 404.5 million barrels, significantly more than the market's expectation of a 0.6 million barrel drop. Current inventories are approximately 7% below the 5-year average.
- Strategic Petroleum Reserve (SPR): Fell by 3.8 million barrels to 307.7 million barrels due to ongoing releases of emergency reserves.
- Cushing Hub Inventories: Decreased by 771 thousand barrels to 18.6 million barrels, a critical delivery point for NYMEX contracts.
- Refinery Activity: Utilization increased by 1.1 percentage points to 97.2%, with throughput rising by 271 thousand barrels per day (b/d) to 17.3 million b/d, contrary to forecasts predicting a decline.
- Production and Trade: US production remained steady at 13.8 million b/d. Imports decreased by 124 thousand b/d to 5.7 million b/d, while exports rose by 114 thousand b/d to 3.5 million b/d.
- Finished Fuel Inventories:
- Gasoline: Remained virtually unchanged at 211.3 million barrels, about 6% below the 5-year average.
- Distillates: Increased by 1.1 million barrels to 110.6 million barrels, contrary to expectations of a decrease.
Market Commentary
The EIA data indicates ongoing supply-side tensions in the US oil market. Commercial crude oil inventories are nearing the lower limits of the 5-year minimums for this time of year, while overall petroleum product inventories are at historically low levels. The high refinery utilization rate of 97.2% reflects strong demand during the peak vacation season, compounded by rising exports and declining strategic reserves, which limits the US's fuel security buffer.
Geopolitical Factors
In addition to the inventory data, geopolitical tensions, particularly in the Middle East, are influencing oil prices. Following the collapse of a truce and missile attacks by Iran on US forces, oil prices, including Brent and WTI, have surged by over 7.5%. Market concerns are focused on potential disruptions to crude oil supplies and key maritime routes in the region.
Current Market Trends
WTI oil prices are experiencing a significant increase, testing levels around $85 per barrel, with important resistance identified between $87 and $88 at the 50.0 retracement level.