Washington, DC – The US Energy Information Administration reported a decline in US crude oil, gasoline, and distillate inventories last week. This decrease exceeded analysts’ expectations, reflecting strong demand and refining activity.
A drop greater than expected
The Energy Information Administration (EIA) reported that crude oil inventories fell by 6.2 million barrels to 459.5 million barrels in the week ending April 24. This compares to expectations of a smaller decline of only 231,000 barrels, according to a Reuters poll.
Crude oil stocks at the Cushing, Oklahoma, delivery hub also fell by 796,000 barrels during the same period. This indicates a growing drawdown in commercial inventories.
Gasoline and distillate prices declined
Meanwhile, U.S. gasoline inventories fell by 6.1 million barrels to 222.3 million barrels, exceeding expectations of a 2.1 million barrel decline.
Distillate fuel inventories, which include diesel and heating oil, also dropped by 4.5 million barrels to 103.6 million barrels, compared to expectations of a 2.2 million barrel decrease, reflecting a significant increase in fuel demand.
Increased refinery activity and decreased imports
Data indicated that crude oil consumption at refineries rose by approximately 84,000 barrels per day during the week. This coincided with a 0.5 percentage point increase in refinery utilization rates, contributing to a faster drawdown of inventories.
Conversely, net U.S. crude oil imports declined by about 1.97 million barrels per day. This decrease further reinforced the downward trend in overall inventories.
This decline comes at a time of significant volatility in global energy markets, driven by geopolitical tensions, particularly those related to the Iran conflict, which directly impact supply and demand balances in the global energy market.
