Crude oil inventories in the United States declined unexpectedly during the week ending October 24, posting a drop of 6.9 million barrels, according to data released by the Energy Information Administration (EIA). This occurred despite analysts projecting an increase of 1.2 million barrels, based on a Bloomberg agency consensus.
The contraction brought commercial reserves, excluding the Strategic Petroleum Reserve, to 416 million barrels. This marks the second consecutive weekly drop. The decrease is primarily attributed to a sharp 14% week-on-week decline in imports, reaching their lowest level since February 2021.
A drop in imports partially offset by exports
Exports increased by 4% over the same period, partially cushioning the impact of falling inbound flows. Net imports fell by more than one million barrels per day. Domestic production remained steady at 13.64 million barrels per day, while refineries continued operating at reduced capacity — 88.6% — due to seasonal maintenance activity.
The EIA’s statistical adjustment also contributed to the drop in inventories. The agency subtracted roughly 481,000 barrels per day from previously estimated volumes, a methodological correction unrelated to the actual activity of the week under review.
Ongoing increase in domestic demand
Implied demand, measured by products delivered to the US market, continued to rise, exceeding 21 million barrels per day. Despite exceeding the annual average, this level did not trigger a significant response on oil markets.
At 15:10 GMT, the price of Brent crude for December delivery was up 1.16% to $65.15, while West Texas Intermediate (WTI) for the same month gained 1.10% to $60.81.
