U.S. crude oil stocks decreased by 2.2 million barrels last week, according to data released last Thursday by the U.S. Energy Information Administration (EIA). This decline contrasts with analysts’ forecasts from Bloomberg, which anticipated an increase of 1.5 million barrels.
The rebound in refinery activity is the primary cause of this contraction in reserves. Refineries operated at 87.7% capacity, compared to 86.7% the previous week. This marks the first increase in refining pace in seven weeks, a period typically characterized by infrastructure maintenance in September and October.
Record Production in the United States
Additionally, U.S. oil production reached a record level of 13.5 million barrels per day, up from 13.4 million previously. This figure confirms the United States’ status as the world’s leading producer of crude oil.
Changes in Imports and Exports
The decline in stocks is also explained by an 11% week-over-week decrease in imports, coupled with a 9% increase in exports. These variations contributed to the overall reduction in U.S. commercial oil reserves.
Decrease in Refined Product Demand
Despite the increase in production, the volumes of refined products delivered to the market decreased by 2% over the same period. This drop is primarily due to an 11% decline in gasoline and a 21% decrease in the propane and propylene category, which is notably used by the industry.
Impact of Weather Conditions
The drop in gasoline could be linked to disruptions caused by Hurricane Milton in Florida, which hindered the supply to numerous gas stations and immobilized many vehicles, thereby affecting demand.
Market Reaction
These data provided a slight boost to crude oil prices, which had been trading near equilibrium until then. Around 15:30 GMT, the West Texas Intermediate (WTI) crude for November delivery rose by 0.30%, reaching $70.60 per barrel.
