The Energy Information Administration (EIA) announced that U.S. crude oil stockpiles unexpectedly decreased last week due to rising exports and increasing refining operations. This marks the second consecutive week of decline, with inventories dropping by 2 million barrels to 445 million barrels by March 15, surpassing analysts’ projections. Additionally, gasoline inventories experienced a more significant-than-expected reduction, with a seventh consecutive week of drawdowns, decreasing by 3.3 million barrels to 230.8 million barrels. Notably, gasoline storage on the Gulf Coast reached its lowest level in three years at 76.58 million barrels.
Oil futures faced extended losses following the report, with Brent crude down by $1.45 to $85.93 per barrel and U.S. crude lower by $1.77 at $81.70 per barrel. Despite the inventory declines, oil prices continued to drop due in part to weakened gasoline demand, as noted by Bob Yawger, director of energy futures at Mizuho.