Overview

• EIA reported commercial crude inventories fell by 6.0 million barrels to 420.7 million, about 6% below the five-year average, with the SPR up 400,000 barrels to 403.4 million.
• Gasoline inventories declined by 2.7 million barrels, distillates rose by about 2.3 million yet remain well below average, and jet fuel consumption on a four-week basis reached its highest since 2019.
• Oil prices edged higher after the data, with Brent near $66.97 per barrel and WTI around $62.86 as traders leaned into the demand signal.
• API’s industry estimate showed a smaller 2.4 million-barrel crude draw for the same week, highlighting a short-term gap between private and government tallies.
• Market sentiment also reflects geopolitics and trade actions, with Russia‑Ukraine diplomacy in focus, a U.S. 25% tariff on Indian goods tied to Russian crude purchases, EU sanctions on Nayara Energy, and Indian refiners resuming Russian oil buys for September and October.