US Crude Inventories Fell Sharply Last Week, API Data Shows, as Oil Prices Rebounded Wednesday

VG Markets · 2026-07-29T02:04:00Z
US Crude Inventories Fell Sharply Last Week, API Data Shows, as Oil Prices Rebounded Wednesday

U.S. crude oil inventories fell by approximately 3.3 million barrels for the week ended July 24, according to American Petroleum Institute estimates cited by Reuters. The preliminary data were generally viewed by market participants as supportive for oil prices and coincided with Wednesday's rebound in crude futures.

Reading the inventory data:

  1. A drawdown of this size typically suggests demand remained relatively resilient compared with supply and may provide support for oil prices.
  2. Gasoline inventories rose by 918,000 barrels, while distillate inventories increased by 355,000 barrels during the same period, presenting a more mixed picture across refined products even as crude stockpiles declined.
  3. Official figures from the U.S. Energy Information Administration (EIA) were scheduled for release later Wednesday. EIA data are generally regarded as the benchmark and may differ from the API's preliminary estimates.

Why markets are watching:

The inventory decline coincided with reports that OPEC+ may pause its scheduled production increases for three months beginning in October, adding another factor that market participants are monitoring.

The developments also followed a roughly 15% three-day decline in crude prices amid easing U.S.-Iran tensions, before renewed regional developments brought supply-related risks back into focus and oil prices rebounded.

On data reliability:

API inventory figures are preliminary industry estimates rather than official government statistics and may later be revised or differ from the EIA's weekly report. As a result, market participants generally view the API release as an early indication ahead of official confirmation.

For Southeast Asian market participants:

With inventory data, OPEC+ developments, and geopolitical events all drawing market attention this week, oil prices may remain sensitive to incoming news and official data releases.

Sources: American Petroleum Institute, Reuters, U.S. Energy Information Administration.