The price of crude increased by $1.44 yesterday, settling at $56.94 per barrel, after the Energy Information Administration revealed that domestic crude inventories decreased last week by 8.6 million bbl and now sit at 445.9 million bbl. The week-over-week reduction is the largest so far in 2019 and was driven largely by a robust crude export rate of 3.4 million b/d, which is more than double the export rate at this time last year. Additionally, the U.S. saw a low crude import rate at 5.9 million b/d last week, which is the lowest rate since February 1996. Low imports also contributed to lower crude inventory levels. If the total domestic crude storage level continues to decline, prices for crude will likely increase. As crude prices increase, American motorists can expect to pay more at the pump.
Total Domestic Crude Inventory Level Sees Major Drawdown Amid Robust Crude Export Rate