U.S. Crude Stocks Hit 20-Year Low as Russian Waiver Expires
BNO•Brent prices slipped below $80 a barrel after U.S. crude inventories fell for a 10th straight week to 758.5 million barrels, the lowest level since March 1985. The U.S. also let its Russian oil waiver expire and saw commercial stocks drop by 8.3 million barrels, tightening supplies.
1. Persistent Inventory Declines
U.S. crude inventories fell for a 10th consecutive week to 758.5 million barrels, the lowest since March 1985, driven by surging demand and reduced net imports. Commercial stocks plunged by 8.3 million barrels as refineries ran near full capacity.
2. Sub-$80 Brent Price Pressure
Brent oil prices dipped below $80 per barrel as markets digested the record-low inventory data and ongoing Middle East uncertainties. Some analysts warn that current price levels may not fully reflect potential disruptions in the Strait of Hormuz reopening.
3. Expiration of Russian Oil Waiver
The U.S. Treasury allowed its sanctions waiver on Russian seaborne oil to lapse at midnight, introducing uncertainty over future import permissions. This policy shift could further tighten global crude balances if Russian exports are curtailed.
