Crude Oil Prices Surge as Inventories Plummet: WTI Oil Approaches Key $66.00 Mark
Crude Inventories Fall by 3 Million Barrels as WTI Oil Nears $66
By Vladimir Zernov | Published August 6, 2025, 14:47 GMT
The U.S. Energy Information Administration data shows crude stocks drop. The report from August 8, 2025 marks a decrease of 3 million barrels in U.S. crude oil inventories from last week. The fall beats the forecast drop of 1.1 million barrels. This change signals a tighter oil supply and a shift in prices.
Inventory Levels Below Seasonal Norms
US crude stocks sit about 6% below the five-year average for early August. Motor gasoline stocks also dip by 1.3 million barrels, a larger drop than the expected 1 million barrels. Distillate fuel stocks fall by 0.6 million barrels during the same week.
Imports and Production Trends
US crude oil imports drop by 174,000 barrels per day, averaging 6.0 million barrels per day. This pace is a bit lower than the recent four-week average of 6.1 million barrels per day. Domestic production slips from 13.314 million barrels per day to 13.284 million barrels per day. These small shifts suggest oil output has not yet turned upward after its yearly peaks.
The Strategic Petroleum Reserve grows slightly from 402.7 million barrels to 403.0 million barrels. The reserve remains stable week by week, with little change on overall supply.
Impact on Oil Prices
When the report came out, West Texas Intermediate oil prices moved higher, testing the $66 per barrel level. The fall in domestic production, paired with a larger-than-expected cut in inventories, seems to push prices up.
Brent crude oil follows the same trend, moving toward $68.50. Many market watchers stay alert to oil supply numbers and global events. The US set a new 25% tariff on India, aimed at its ongoing purchases of Russian oil. This move may shift global oil trade and price patterns.
Outlook
Traders and analysts now watch weekly inventory reports and world events. They see that lower stocks combined with small production dips might push oil prices higher soon. Tariffs and trade rules remain key as they shape the market.
For more on market updates and economic data, check the economic calendar and related market analyses.
About the Author
Vladimir Zernov is an independent trader with over 18 years of experience in stocks, futures, forex, indices, and oil markets. He studies both long and short trends to help traders better understand market moves.
Disclaimer: This article is for information only and is not investment advice. Readers should do their own research or consult experts before making any trading decisions.
