According to the Energy Information Administration (EIA), U.S. oil inventories fell significantly last week, with crude oil stockpiles reaching their lowest levels in nearly 2-1/2 years. Crude stocks decreased by 4.5 million barrels to 413 million barrels for the week ending September 20, surpassing analysts’ expectations of a 1.4 million-barrel draw.
Excluding the Strategic Petroleum Reserve, U.S. crude inventories are at their lowest since April 2022. Stocks at the Cushing, Oklahoma delivery hub increased by 116,000 barrels, marking the first rise since early August.
Market analysts noted that even those pessimistic about oil prices recognize the current supply shortage. Oil futures reacted to the report, with Brent crude trading at $74.82 per barrel and West Texas Intermediate crude at $71.06.
Refinery crude runs decreased by 124,000 barrels per day, and utilization rates fell to 90.9% of total capacity. Gasoline stocks dropped by 1.5 million barrels, while distillate inventories, which include diesel and heating oil, fell by 2.2 million barrels, exceeding expectations.
Despite a rise in net U.S. crude imports by 826,000 barrels per day, exports declined by 692,000 barrels per day to 3.9 million barrels.