US Crude Oil Inventory Drop Drives Rising Oil Prices
Recent data from the U.S. Energy Information Administration (EIA) reveals a significant drop in crude oil inventories. As of January 24, 2026, commercial stockpiles decreased by 2.3 million barrels, bringing the total to 423.8 million barrels. This figure is 3% below the five-year average for this time of year.
Crude Oil Prices Rise Amid Decreased Inventory
The drop in inventories coincides with a rise in crude oil prices. On the morning of January 28, Brent crude was priced at $68.11 per barrel, marking an increase of $0.54 or 0.80% from the previous day. West Texas Intermediate (WTI) saw a similar uptick, trading at $63 per barrel, up $0.61 or 0.98%.
API Data and Market Reactions
Prior to the EIA release, the American Petroleum Institute (API) indicated that crude inventories fell by 247,000 barrels. This early report suggested a tightening supply, contributing to increased price momentum.
- Brent Crude: $68.11 per barrel (+0.80%)
- WTI Crude: $63.00 per barrel (+0.98%)
Gasoline and Distillate Inventories
In addition to crude oil, the EIA reported changes in gasoline and middle distillate inventories. Total motor gasoline inventories increased by 200,000 barrels, following a notable gain of 6 million barrels the previous week. Average daily gasoline production rose to 9.6 million barrels.
Middle distillate inventories also saw an increase of 300,000 barrels, although production decreased by 268,000 barrels daily, averaging 4.8 million barrels per day.
U.S. Oil Demand Trends
Total products supplied, which serve as a proxy for U.S. oil demand, climbed to 20.3 million barrels per day over the last four weeks. This figure, however, represents a decline of 0.1% compared to the same timeframe last year. Key demand statistics include:
- Gasoline Demand: Averaged 8.3 million barrels per day
- Distillate Supply: Averaged 3.7 million barrels per day (-4.8% year over year)
The recent decline in crude oil inventories and rising prices reflect the complex dynamics in the U.S. oil market. Ongoing geopolitical tensions and weather-related disruptions are expected to continue influencing these trends.
