Domestic Oil and Gas News: Week of July 28th, 2025

Supply & Inventory Trends

• Crude & Gasoline Stocks Drop Sharply
  U.S. crude oil inventories declined by 3.2 million barrels, with gasoline stocks down 1.7 million barrels—both well exceeding expectations. Distillate inventories rose by 2.9 million barrels, while refinery utilization set a one-year high of 96.1% on the Gulf Coast EnergyNow+15U.S. News Money+15U.S. News Money+15Wall Street Journal+4Reuters+4Rigzone+4.

• Exports Climb
  Crude exports rose to 3.86 million bpd, aiding the inventory draw while net imports fell by 740,000 bpd U.S. Energy Information Administration+2Reuters+2Baird Maritime / Work Boat World+2.

Rig Activity & Production Trends

• Small Weekly Rig Gain
  U.S. rig count rose by +7 rigs, reaching 544, ending 12 weeks of declines. Oil rigs remain low (~422), while gas rigs rose to ~117—driven by Haynesville activity Reuters+4U.S. News Money+4U.S. News Money+4U.S. Energy Information Administration+3American Oil & Gas Reporter+3U.S. News Money+3.

• Production Stabilizing
  U.S. field production remains near 13.375 million bpd, showing a third straight weekly dip, indicating supply is tightening IEA.

Trade & Export Policy Updates

• Ethane Exports Resume to China
  On July 2, the U.S. lifted restrictions that previously blocked ethane exports to China. This policy reversal is set to boost ethane exports to over 500,000 bpd in 2025 and nearly 650,000 bpd in 2026, reversing prior expected declines Reuters+14U.S. News Money+14World Energy+14Oil & Gas 360+8U.S. Energy Information Administration+8U.S. Energy Information Administration+8. EIA forecasts also adjusted production forecasts higher accordingly IEA+8U.S. Energy Information Administration+8Wall Street Journal+8.

Policy & Strategic Developments

• Ambitious EU–U.S. Energy Deal Draws Scrutiny
  Under a new U.S.–EU trade framework, Europe pledged $250 billion per year in energy purchases. Analysts warn the goal is unrealistic: EU imports in 2024 were valued around $64B, and shipping/logistical capacity constraints make it impractical Reuters+3Reuters+3Wall Street Journal+3.

Market Sentiment & Price Movement

• Oil Prices Rally on Trade Optimism
  Brent crude rose to ~$68.66/bbl (+0.32%) and WTI to ~$65.38/bbl (+0.34%) as trade developments—especially U.S.–EU and U.S.–China talks—boosted sentiment. Expectations of an OPEC+ output hike in August (~548,000 bpd) capped gains Reuters+2Reuters+2Reuters+2Reuters.

• Upcoming OPEC+ Monitor Meeting
  The JMMC is scheduled to review compliance and prepare for discussions on September production targets, amid growing speculation that the output cuts enacted earlier in the year could be reversed entirely soon U.S. News Money+15Reuters+15ETEnergyworld.com+15.