The Strategic Petroleum Reserve continues to drain rapidly as the administration releases supply to dampen pricing pressure. Another 7.9 million barrels exited the reserve last week, pushing total holdings down to 349.2 million barrels. This marks the lowest level recorded since August 2023, leaving the facility 376 million barrels short of its maximum capacity. Meanwhile, domestic production remains relatively stable at 13.707 million barrels per day, a slight dip from the previous week but still higher than year-ago figures.

Market participants appear unfazed by the tightening supply. Brent crude fell to $91.39, while WTI dropped to $88.12, reflecting a roughly $4 decline since last week. This bearish trend persists even as industry data shows OECD stockpiles dipping toward levels not seen in decades. While gasoline inventories also tightened by 1.191 million barrels, distillate stocks bucked the trend with a 1.3 million barrel increase, and Cushing hub inventories fell by 1.125 million barrels.