Record Gulf Coast exports push U.S. oil inventories lower

(The Center Square) – U.S. crude oil inventories, including commercial stockpiles and the nation’s emergency reserves, fell by 16 million barrels last week to their lowest combined level in more than two decades, as strong demand for exports of American petroleum products continued in world markets.

Commercial crude oil stockpiles fell by 8 million barrels to a 22-year low of 434 million barrels in the week ended June 1, the U.S. Energy Department reported on Wednesday. At the same time, the U.S. Strategic Petroleum Reserve, stored primarily in four underground salt cavern systems in Texas and Louisiana, also fell by 8 million barrels in the week ended June 1, dropping to a 28-month low of 357 million barrels, the data showed.

Average U.S. gasoline prices have trended sharply lower in the last two weeks, dropping from $4.48 a gallon to $4.22 a gallon on Friday, providing some relief to drivers.

Although U.S. refineries produced a robust 9.4 million barrels per day of gasoline in the week ended Jun...