US Oil Inventories Fall Unexpectedly as Imports Plummet
Washington D.C. – US crude oil inventories experienced a surprising decline last week, according to a report released Wednesday by teh Energy Information Governance (EIA). The decrease was largely driven by a significant drop in oil imports.
Data for the week ending October 24th revealed a drawdown of approximately 6.9 million barrels, sharply contrasting with market expectations of a 1.2 million barrel increase, as compiled by Bloomberg. Total crude stocks, excluding the Strategic Petroleum Reserve, now stand at 416 million barrels following two consecutive weeks of decline.
A key factor behind this trend is a substantial reduction in import volumes, down 14% from the previous week and reaching their lowest point since February 2021. Simultaneously, exports saw a modest increase of 4%, resulting in a net import decrease exceeding one million barrels per day.
US oil production remained relatively flat at 13.64 million barrels per day. Refinery utilization rates continued at a seasonally lower level of 88.6%, consistent with ongoing fall maintenance schedules.
The EIA report also included a statistical revision, adjusting previously reported data downwards by approximately 481,000 barrels per day - a correction unrelated to current market activity.
Despite the inventory decline, demand appears robust, with product supplied to the US market rising to over 21 million barrels daily.
The report’s release had a limited impact on oil prices. As of 3:10 p.m. GMT, Brent crude for December delivery edged up 1.16% to $65.15 per barrel,while West Texas Intermediate (WTI) for the same month gained 1.10% to $60.81 per barrel.
