API Data Show Another Weekly Draw in US Crude as Prices Cross the $100 Mark

The American Petroleum Institute (API), an industry group that publishes weekly estimates of US petroleum stockpiles, reported that crude oil inventories declined by 300,000 barrels in the week ending September 4. That follows a much larger draw of 2.6 million barrels the prior week, according to the same data series.

The modest weekly decline fits within a longer pattern. Commercial crude stocks — a measure that excludes the Strategic Petroleum Reserve (SPR), the federal government’s emergency oil stockpile — have shed just over 48 million barrels across the past 21 weeks, per API figures. Even so, inventories remain up 2.8 million barrels on the year, a balance kept in check in part by continued releases from the SPR. In the week ending September 4 alone, another 1.2 million barrels left the reserve to supplement commercial supplies.

The inventory report landed as crude prices moved above $100 per barrel, a level that tends to sharpen market attention on weekly supply data. Inventory drawdowns — weeks in which more crude leaves storage than enters it — are generally read as a signal of demand outpacing supply, though weekly API estimates are preliminary and are followed by official figures from the US Energy Information Administration later in the week.

The distinction between commercial stocks and the SPR matters for interpretation. Drawdowns from the reserve reflect government releases rather than market fundamentals, meaning the underlying commercial picture can look tighter or looser depending on how much crude the SPR is contributing. With the reserve still shipping barrels into the commercial system, part of the 21-week drawdown reflects that policy-driven supply rather than refining demand alone.

Beyond the oil complex, utility-sector shares were broadly steady in Tuesday trading. American States Water (AWR) changed hands at $88.28, down 0.45% from the prior close of $88.68, valuing the company at roughly $3.5 billion. Water utilities are often watched alongside energy markets as rate-regulated operators whose costs — and sometimes revenues — move with energy prices.

What to watch

• The US Energy Information Administration’s official weekly inventory report, which follows the API’s preliminary estimate.
• Whether SPR releases continue at the recent pace, and how that affects year-over-year commercial stock comparisons.
• Whether crude prices hold above the $100 level in upcoming trading sessions.
• Next quarterly earnings and capital-spending guidance from regulated utilities including American States Water.

Source: original release