Global Commercial Crude Inventory Decline
The International Energy Agency (IEA) latest weekly data shows global commercial crude inventories have declined for eight consecutive weeks, with a cumulative reduction of approximately 45 million barrels. The pace of inventory decline exceeded market expectations, reflecting a tightening global crude supply-demand landscape.
US Strategic Petroleum Reserve Release
The US Department of Energy announced it will release 30 million barrels from the Strategic Petroleum Reserve (SPR) over the next three months to ease raw material supply pressure on domestic refiners. This is the largest SPR release plan since 2022.
OECD Inventory Level Analysis
OECD member countries commercial crude inventories are currently at five-year lows. European inventory declines are particularly notable, mainly driven by increased refinery utilization rates and reduced import arrivals.
Floating Storage Changes
Global offshore floating crude storage has also declined, with VLCC loading volumes dropping to three-year lows. Reduced floating storage indicates strong spot market demand, with traders actively shipping cargoes.
Impact on Asia Pacific Market
Global inventory declines pose challenges for Asia Pacific crude importing nations. China, India and other countries are actively replenishing strategic reserves while optimizing commercial inventory structures to prepare for potential supply disruption risks.
