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Weekly Crude Inventories Drop; Oil Jumps Amid Uncertainty Over Ukraine Peace Deal
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Weekly Crude Inventories Drop; Oil Jumps Amid Uncertainty Over Ukraine Peace Deal
Aug 20, 2025 11:43 AM

02:27 PM EDT, 08/20/2025 (MT Newswires) -- Commercial crude stockpiles in the US declined more than expected last week as motor gasoline inventories shrank, government data showed Wednesday.

Inventories of crude, excluding the strategic petroleum reserve, fell by 6 million barrels to 420.7 million barrels through the week ended Friday, the Energy Information Administration said. The consensus was for a draw of 850,000 barrels in a survey compiled by Bloomberg.

Motor gasoline stocks dropped by 2.7 million barrels. Propane and propylene inventories rose by 2.6 million barrels and distillate fuel added 2.3 million barrels. Total commercial petroleum inventories were down by 4.2 million barrels.

Gasoline output declined, while production of distillate fuel increased, according to the report.

West Texas Intermediate crude was up 1.3% at $63.18 a barrel in Wednesday afternoon trade, while Brent rose 1.6% to $66.85 a barrel.

"Oil prices rose after industry data showed a decline in US crude inventories, while uncertainty prevailed over Ukraine talks," D.A. Davidson said in a note e-mailed to MT Newswires on Wednesday.

On Tuesday, President Donald Trump said there will be no US troops to be deployed to defend Ukraine's border, according to a White House-released summary of an interview with Fox & Friends.

The remarks came after Trump's recent meeting with Russian President Vladimir Putin in Alaska, followed by talks with Ukraine President Volodymyr Zelenskiy and several European leaders at the White House on Monday.

Trump previously said there would be serious consequences if Moscow doesn't accept a ceasefire.

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