Crude Oil Supply Plummets: Inventories Fall by 6 Million Barrels as WTI Tests $62.50 Milestone
Crude Inventories Drop by 6 Million Barrels; WTI Oil Tests the $62.50 Level
By Vladimir Zernov | Published August 20, 2025, 14:43 GMT+00:00
On August 20, 2025, the U.S. Energy Information Administration set out its latest Weekly Petroleum Status Report. The report shows that crude stocks fell by 6 million barrels in one week. Analysts had guessed a drop of only 1.3 million barrels. This report ties a steep loss in stocks with tighter supply.
Inventory Levels and Market Impact
Crude stocks now sit 6% below the five-year average. Gasoline numbers dropped by 2.7 million barrels when forecasters saw a loss of 0.8 million barrels. Distillate fuel, which includes diesel and heating oil, climbed by 2.3 million barrels.
Crude oil imports averaged 6.5 million barrels per day. This number is 423,000 barrels lower than the previous period. The four-week average comes to 6.4 million barrels per day. These figures show a slow drop in incoming oil.
Domestic Production and Strategic Reserves
Domestic oil production went up. It moved from 13.327 million barrels per day to 13.382 million barrels. This rise shows that U.S. production stays steady. The Strategic Petroleum Reserve grew too, from 403.2 million barrels to 403.4 million barrels. The reserve now adds oil at a slow pace.
Price Movements: WTI and Brent
WTI crude oil prices stayed nearly the same after the report came out. Traders now work to keep prices above $62.50 per barrel. Across the ocean, Brent crude also fights to hold above $66.50 per barrel. The drop in inventories helps keep oil prices up. Some traders worry that extra production from OPEC+ nations may dump too much oil into the market. This mix keeps traders careful.
Outlook
Lower crude inventories and steady production give a positive sign to the oil market. Yet the chance of too much supply may slow price rises. Traders keep a close watch on new supply data and global events that may shift prices. For more on economic impacts and upcoming market events, check the economic calendar.
About the Author:
Vladimir Zernov is an independent trader with more than 18 years of experience in stocks, futures, forex, and commodities. He works on both short- and long-term forecasts.
This article shows the latest data as of August 20, 2025, and is meant only for information. Please do your own research or consult a financial advisor before making any investment moves.
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