U.S. gasoline stockpiles fell unexpectedly last week, reaching a two-year low, according to the Energy Information Administration (EIA). Key highlights include:
Stockpile Decline: Gasoline inventories decreased by 2.7 million barrels to 210.9 million barrels for the week ending October 25, the lowest level since November 2021. Analysts had anticipated a 600,000-barrel increase.
Demand Surge: Gasoline supplied, a measure of demand, rose to 9.2 million barrels per day, up from 8.8 million bpd the previous week, marking the highest level since early October.
Market Reaction: Following the report, U.S. gasoline futures extended their gains, while crude oil futures remained relatively stable.
Crude Oil Inventory Changes: Crude oil stocks also saw a surprise drawdown, falling by 515,000 barrels to 425.5 million barrels, contrary to expectations of a 2.3 million-barrel rise. Notably, crude imports decreased significantly.
Cushing Hub Dynamics: Crude stocks at the Cushing, Oklahoma delivery hub increased by 681,000 barrels, highlighting regional inventory shifts.
Refinery Activity: Refinery crude runs dipped by 31,000 bpd, and refinery utilization rates fell to 89.1% of total capacity.
Distillate Stockpile Trends: Distillate inventories, which include diesel and heating oil, decreased by 1 million barrels, slightly less than the expected drop.
Analyst Insights: Analysts noted that continued inventory declines could lead to rising oil prices and potential adjustments from OPEC+ regarding market supply.