U.S. crude oil inventories rose by 3.9 million barrels to 417 million barrels for the week ending September 27, according to the Energy Information Administration (EIA). This increase contrasts with analysts’ expectations for a 1.3 million-barrel draw. The rise in inventories is attributed to a decline in refinery utilization rates, which fell by 3.3 percentage points to 87.6% as many refiners entered seasonal maintenance following the summer driving season.
Refinery crude runs decreased by 662,000 barrels per day, leading to a significant build in crude stocks. At the Cushing, Oklahoma delivery hub, crude stocks rose by 840,000 barrels. As a result, oil prices pared earlier gains, reflecting the market’s reaction to the inventory increase.
Additionally, U.S. gasoline stocks rose by 1.1 million barrels to 221 million barrels, contrary to expectations for a draw. Gasoline demand, measured by product supplied, fell to 8.5 million barrels per day from 9.2 million bpd, while distillate supplied also decreased.
The data indicates a notable decline in summer gasoline demand and a drop in distillate fuel demand, contributing to the overall increase in crude oil inventories.