U.S. Crude Oil Inventories Plunge to Record Decline in a Week

The weekly report released by the U.S. Energy Information Administration on Wednesday showed that as of the week ending May 15th, commercial crude oil inventories in the United States plummeted by 7.86 million barrels to approximately 445 million barrels, significantly surpassing the market's anticipated decrease of 2.1 million barrels and falling below the five-year seasonal average by about 2%. The previous week saw a reduction of 4.3 million barrels, with a continuous and accelerating trend of significant stock depletion.

The surge in exports is the core driver of this round of inventory decline. Following the outbreak of war in Iran, the Strait of Hormuz effectively came to a standstill, with Asian and European buyers turning to the United States for alternative supplies. Crude oil exports in the Atlantic Basin reached an all-time high at the beginning of May, with a significant amount of oil continuously leaving the domestic market through export channels.

At the same time, the drawdown in strategic petroleum reserves is equally alarming. As of the week ending May 8th, SPR inventories plummeted by 8.6 million barrels in a single week to 384 million barrels, setting a new record for the largest weekly decrease, surpassing the previous record from September 2022. Including the strategic reserves, the U.S. crude oil inventory saw a staggering drop of 17.8 million barrels for the week, marking the largest weekly decline on record and bringing inventory levels to a near one-year low.

Since the beginning of the year, the SPR has collectively decreased by approximately 31 million barrels, reaching the lowest level since October 2024.

The policy implications of this figure cannot be overlooked. The rapid depletion of the SPR means that the government's ability to use reserves to stabilize oil prices is narrowing. Should the situation in the Strait of Hormuz deteriorate further or geopolitical risks escalate, the United States' emergency buffer capacity on the supply side will be substantially limited.

On Wednesday, Trump stated that U.S.-Iran negotiations had entered the "final stage," causing oil prices to retreat and the market sentiment to briefly ease. However, until a ceasefire is truly implemented and Hormuz shipping returns to normal, the dual pressures of commercial inventory and strategic reserve depletion will remain the core variables in oil market pricing.