Crude Draws Accelerate: US Inventories Fall 4.93M Barrels
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API estimates show US crude stockpiles fell 4.93 million barrels for the week ending October 16, following an 11.12 million barrel plunge the prior week. Commercial inventories excluding the SPR have shed over 56 million barrels across 27 weeks.
The drawdown coincides with the Strait of Hormuz closure, which has pushed VLCC spot rates above $1 million per day. Producers are now cutting prices to offset buyers' elevated transport costs, a dynamic compressing margins across the supply chain.
Despite the steep multi-week decline, US crude stocks remain just 5 million barrels below year-start levels, suggesting the drawdown is catching up to a previously well-supplied market rather than signaling acute scarcity.