US Crude Stockpiles Drop as Exports Surge to Record High: EIA

U.S. crude oil exports surged to an all-time high last week, contributing to another fall in stockpiles, driven by overseas demand due to the big discount for U.S. crude when compared with international benchmark Brent.

Crude inventories dropped 4.5 million barrels to 422.1 million barrels in the week ended July 22, the U.S. Energy Information Administration (EIA) said on July 27, compared with expectations for a 1 million-barrel drop.

The decline was in large part the result of a surge in crude exports to a record 4.5 million bbl/d in the latest week. Exports could continue to rise, thanks to a wide spread between the U.S. and international crude benchmarks, particularly as Europe has reduced imports from its top supplier, Russia, in the wake of Moscow’s invasion of Ukraine and subsequent sanctions on that nation.