The Energy Information Administration (EIA) revealed that U.S. crude and fuel inventories decreased substantially during the last week because of rising demand and rising refinery production.
The crude stockpiles decreased by 5.8 million barrels to reach 415.1 million barrels which exceeded the predicted decrease of less than 1 million barrels. The storage facilities at Cushing Oklahoma decreased their oil reserves by 464,000 barrels.
The current gasoline demand reached 9.7 million barrels per day which marks the highest level since late 2021. The gasoline inventory decreased by 2.1 million barrels despite market predictions of a minimal increase. The distillate stock levels which contain diesel and heating oil decreased by 4.1 million barrels.
The refinery operations increased by 125,000 barrels per day which resulted in a 94.7% utilization rate that matched July 2024 levels.
The market responded positively to the news as Brent crude prices increased by 83 cents to $67.97 and West Texas Intermediate prices rose by 90 cents to $65.27.
According to Phil Flynn of Price Futures Group the market situation represents a basic supply-and-demand relationship. The market stabilized after recent geopolitical volatility because real consumption strength became evident through the broad-based inventory draws.
