Crude Inventories Rise By 3.8 Million Barrels; WTI Oil Rebounds Above $65.50

On July 2, 2025, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by +3.8 million barrels from the previous week, compared to analyst consensus of -2 million barrels.

Total motor gasoline inventories increased by +4.2 million barrels, compared to analyst forecast of -0.94 million barrels. Distillate fuel inventories decreased by -1.7 million barrels from the previous week.

U.S. crude oil imports increased by 976,000 bpd, averaging 6.9 million bpd. Over the past four weeks, crude oil imports averaged 6.1 million bpd. Rising crude oil imports served as the key catalyst for the increase in crude oil inventories.

Strategic Petroleum Reserve increased from 402.5 million barrels to 402.8 million barrels as U.S. continued to buy oil for strategic reserves.

Domestic oil production declined from 13.435 million bpd to 13.433 million bpd. Current oil price levels do not provide sufficient incentives to boost production.

WTI oil moved higher as traders reacted to the EIA report. Currently, WTI oil is trying to settle back above the $65.70 level. Domestic oil production is not rising due to low prices, which is bullish for oil markets.

Brent oil made an attempt to settle above the $67.50 level after the release of the report.

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