US crude oil stockpiles drop sharply as prices rally

The American Petroleum Institute (API), the leading US trade organization representing the oil and gas sector, released the following industry updates. Data shows domestic crude stock levels fell by 4.49 million barrels for the week ending May 2, nearly twice the 2.5 million barrel decline analysts had forecast. The drawdown comes amid strengthening commodity prices across energy markets.

This marks a sharp reversal from the previous week's 3.76 million barrel inventory build. Since the beginning of the year, US crude stockpiles have expanded by more than 18 million barrels. Oilprice researchers arrived at these determinations through analysis based on API statistics.

Meanwhile, the US Strategic Petroleum Reserve (SPR) was replenished by 600,000 barrels, bringing the total to 399.1 million barrels. This remains well below pre-withdrawal levels set earlier under the Biden administration.

On the pricing front, Oilprice reports that Brent crude climbed to $63.19 per barrel, and WTI reached $60.23. However, both benchmarks remain about $1–2 lower than last week’s levels, following OPEC+'s production decision.