U.S. Crude Stocks Fall 4.5 Million Barrels as Fuel Demand Weakens
Key Takeaways
- •U.S. crude oil inventories fell by 4.5 million barrels in the week ended August 28, according to the EIA.
- •Commercial crude stockpiles stood at 424.5 million barrels, or 1% above the five-year average for the period.
- •The API had reported a 2.6 million-barrel decline in U.S. crude inventories for the same week.
- •Total motor gasoline inventories dropped by 1.2 million barrels, while gasoline production held at 9.8 million barrels per day.
- •Middle distillate inventories increased by 800,000 barrels, and distillate stocks were 14% below the five-year average.
Crude oil inventories in the United States declined by 4.5 million barrels in the week ended August 28, according to new data from the U.S. Energy Information Administration (EIA) released on Wednesday. The draw left commercial crude stockpiles at 424.5 million barrels, government data showed, or 1% above the five-year average for this time of year.
The EIA report came after figures from the American Petroleum Institute (API), released a day earlier, showed U.S. crude inventories falling by 2.6 million barrels in the same period. Weekly inventory reports from the EIA and API are closely watched because they provide a snapshot of crude balance, refinery activity, and demand trends across the U.S. fuel market.
Oil prices were lower in New York at 10:18 a.m. Crude futures were trading down on the day, while Brent futures stood at $94.01 per barrel, down $0.64, or 0.68%, but roughly $7 per barrel higher than at the same time last week. WTI was also lower on Wednesday morning, trading at $89.24 per barrel, down $0.98, or 1.09%, and about $8 per barrel above its level a week earlier.
In refined products, the EIA said total motor gasoline inventories fell by 1.2 million barrels, following a 2.5 million-barrel decline in the previous week. Average daily gasoline production held at 9.8 million barrels.
Middle distillate inventories rose by 800,000 barrels, while production declined to an average of 5.1 million barrels per day. Distillate inventories are now 14% below the five-year average.
Total products supplied, a proxy for U.S. oil demand, averaged 20.4 million barrels per day over the last four weeks, down 4% from the same period a year earlier. Gasoline demand averaged 8.9 million barrels per day over the four-week period, while the four-week average for distillates supplied was 3.7 million barrels, down 6% year over year. Those demand figures matter because they help show whether draws in crude stocks are being matched by stronger fuel consumption or by shifts in refinery runs and product inventories.
By Julianne Geiger for Oilprice.com
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