US commercial oil inventories fell by 7.2 million barrels during the week ending July 24, 2026, according to data from the Department of Energy.
Total stockpiles stood at 404.5 million barrels, a level that remains 7% below the five-year average for this time of year.
7 million barrels reported for the week ending July 10, signaling an acceleration in inventory depletion.
The drawdown follows a smaller decline of 1.7 million barrels reported for the week ending July 10, signaling an acceleration in inventory depletion.
The persistent drawdowns are tightening the supply buffer at a time when geopolitical risks are already weighing on global energy markets.
Recent strikes on Russian refineries by Ukraine have heightened fears of further supply disruptions, keeping a lid on available crude and supporting higher prices. The combination of shrinking US stocks and external supply shocks is reinforcing the bullish case for Brent crude, which has seen volatility driven by these cross-asset risks.
The inventory data also arrives as the US Strategic Petroleum Reserve (SPR) continues its rapid liquidation, having dropped by 5.1 million barrels to reach its lowest level since 1983. This dual pressure from commercial and strategic stockpiles suggests that the market’s cushion against supply shocks is thinner than in previous years, potentially amplifying price reactions to any further geopolitical escalations.
Traders will now look to weekly inventory reports and any new developments in the Russia-Ukraine conflict for further direction.
The next key catalyst will be the upcoming EIA report, which will provide further clarity on whether the drawdown trend is sustainable or if seasonal factors are at play.