US petroleum stockpiles are draining at a rapid pace: Total US crude and petroleum product inventories fell -10.6 million barrels last week, to 1.57 billion barrels, the lowest since 2004, according to the EIA. This was driven by commercial and government crude stocks, which fell -15.9 million barrels, the 2nd-largest weekly drop on record. The drawdown comes as exports to Asia and Europe are surging, with global markets scrambling to replace lost Middle Eastern supplies. Before the Iran War, US crude and petroleum product exports were ~3.0 million barrels per day. They are now up to 13.6 million barrels per day, the 2nd-highest reading on record. Meanwhile, the Strategic Petroleum Reserve fell another -7.9 million barrels last week, now down -58 million barrels since the start of the war, to 357 million barrels, the lowest since January 2024. The US is acting as the lender of last resort for global oil markets.(The Kobeissi Letter)