SunSirs: EIA: US Crude Oil and Refined Product Inventories Both Declined More Than Expected Last Week

On Wednesday, October 29, the US Energy Information Administration (EIA) released its inventory report showing that US crude oil, gasoline, and distillate fuel inventories declined last week, as US crude oil imports fell to their lowest level since February 2021.

Data showed that as of October 24, US commercial crude oil inventories decreased by 6.86 million barrels to 416 million barrels, compared to market expectations of a 200,000-barrel decrease.

Crude oil inventories at Cushing, Oklahoma, increased by 1.33 million barrels.

During the week, US refinery crude oil processing decreased by 511,000 barrels per day, and US refinery capacity utilization fell by 2 percentage points to 86.6%.

US gasoline inventories decreased by 5.94 million barrels to 210.7 million barrels, compared to market expectations of a 1.9 million-barrel decrease.

U.S. distillate fuel inventories, including diesel and heating oil, fell by 3.36 million barrels to 112.2 million barrels this week, compared to market expectations of a 1.7 million barrel decrease.

Net U.S. crude oil imports decreased by 1.03 million barrels per day to 690,000 barrels per day, compared to a four-week average of 1.569 million barrels per day.

Following the data release, Brent crude and U.S. crude futures prices rose. At 1520 GMT, Brent crude futures were up 80 cents, or 1.24%, to $65.20 a barrel; U.S. crude futures were up 71 cents, or 1.18%, to $60.86 a barrel.

Phil Flynn, an analyst at Price Futures Group, said, "This is quite bullish. Where is the oversupply? The pessimism about demand and the concerns about oversupply haven't really materialized."

U.S. gasoline and heating oil futures continued their upward trend.

The EIA reported that crude oil imports, excluding strategic petroleum reserves, fell by 867,000 barrels per day last week to 5.05 million barrels per day.

Crude oil imports along the U.S. Gulf Coast hit a record low, falling by 477,000 barrels per day to 597,000 barrels per day. This region accounts for approximately half of the total U.S. refining capacity.

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