On Thursday, October 16th, the US Energy Information Administration (EIA) announced that US crude oil inventories increased last week, while gasoline and distillate inventories decreased. As of the week ending October 10th, US crude oil inventories increased by 3.5 million barrels to 423.79 million barrels, while analysts expected an increase of 288,000 barrels. US gasoline inventories decreased by 267,000 barrels to 218.8 million barrels this week, while analysts expect a decrease of 75,000 barrels. The inventory of distillate oil, including diesel and heating oil, decreased by 4.5 million barrels to 117 million barrels this week, with an expected decrease of 294,000 barrels.

US crude oil inventories increased by 3.5 million barrels, far exceeding the expected 288,000 barrels, indicating an exacerbation of oversupply and a significant negative impact on spot prices. The accumulation of inventory reflects weak demand or increased production, which may suppress short-term price upward space.

Gasoline inventory decreased by 267,000 barrels, higher than the expected decrease of 75,000 barrels, indicating strong consumer demand or tight supply, which is favorable for spot prices. The unexpected decrease in inventory supports price rebound, especially in the North American market.

The inventory of distillate oil (including diesel) decreased by 4.5 million barrels, significantly exceeding the expected reduction of 294,000 barrels, indicating strong demand for diesel. Combined with the recent market trend of fuel oil futures (such as the settlement price of contract 2601 at 2,694 RMB/ton, up 25%), the sharp drop in inventory is favorable for the fundamentals and may drive up futures prices, especially as the peak season for winter heating demand approaches.

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