The U.S. Energy Information Administration (EIA) recently released data highlighting significant developments in both the U.S. energy market and China’s nuclear power sector. In the United States, a sharp drop in crude oil inventories combined with strong employment and service sector growth has fueled expectations of continued Federal Reserve interest rate hikes. Meanwhile, China’s nuclear power capacity has nearly doubled since 2016, with extensive reactor construction underway.
According to the EIA, U.S. commercial crude oil inventories fell by nearly 8 million barrels last week, a decline far exceeding forecasts. This drawdown reflects increased demand amid geopolitical tensions in the Middle East that have redirected global energy flows toward American crude supplies. The tightening supply outlook has pushed crude oil prices higher, with Brent crude rising to nearly $98 per barrel and West Texas Intermediate climbing to over $96 per barrel.
The stronger energy demand aligns with robust economic data from the U.S., including a rise in private sector employment and an increase in service sector activity. The ADP report showed private employment growth reaching its highest level since early 2025, particularly in education, health services, trade, and transportation sectors. Additionally, the Institute for Supply Management’s Services PMI rose above expectations, indicating steady expansion in the service economy.
These economic indicators have heightened market anticipation that the Federal Reserve will maintain a “higher-for-longer” stance on interest rates to manage inflation pressures exacerbated by rising energy costs. Market tools now suggest a significant probability of an interest rate increase later this year, which has influenced a pullback in major U.S. stock indexes and strengthened the U.S. dollar.
On the international front, China’s nuclear power industry continues its rapid growth trajectory. From 2016 through 2024, China increased its nuclear generation capacity by 76%, adding 24 gigawatts (GW). In 2025 and early 2026 alone, the country added an additional 3.3 GW of capacity through new reactor commissions. Currently, China operates 60 reactors totaling nearly 59 GW of capacity at 18 sites primarily along its eastern coast.
China is aggressively expanding its nuclear fleet with 36 reactors under construction—accounting for nearly half of all global nuclear projects underway. The country’s approach includes building reactors in batches using standardized designs to improve efficiency and reduce construction times to between five and seven years, faster than the global average. It is also developing domestic supply chains for critical components to lessen reliance on foreign vendors.
Among new advancements is China’s first small modular reactor (SMR), Linglong-1, designed for power generation as well as water desalination and heating applications. This domestically developed 100-megawatt reactor is expected to begin commercial operation soon, showcasing China’s commitment to innovative nuclear technology.
Together, these reports from the EIA underscore dynamic shifts in global energy markets: the United States faces tightening oil supplies amid strong economic growth while China pursues ambitious nuclear power expansion to meet future energy needs and reduce carbon emissions.
