US oil inventories recorded a sharp decline last week, falling by 8 million barrels, according to the US Energy Information Administration. The drop significantly exceeded analysts’ expectations, while gasoline and distillate stocks posted notable increases.
The data, covering the week ending May 29, showed that crude inventories fell to 433.7 million barrels, compared with market forecasts of a 4 million barrel decline.
Crude Stocks Fall More Than Expected
In its weekly report, the EIA stated that US oil inventories declined by 8 million barrels, marking a stronger than anticipated draw.
Crude stocks at the Cushing, Oklahoma delivery hub decreased by 583,000 barrels. Inventories along the US Gulf Coast also dropped by 6.7 million barrels during the same period.
The report further indicated that US oil exports reached 5.9 million barrels per day, the second highest level ever recorded. Net US crude imports fell by 249,000 barrels per day over the week.
Since the beginning of the Iran-related regional conflict, US crude inventories have declined by 63.9 million barrels.
Gasoline and Distillate Stocks Rise
Despite the significant decline in crude stocks, gasoline inventories rose by 3.4 million barrels to 215 million barrels. Analysts had expected a 0.5 million barrel decrease.
Distillate inventories, which include diesel and heating oil, increased by 1.5 million barrels to 102.3 million barrels, compared with expectations for a 0.3 million barrel decline.
Key weekly changes included:
– Crude inventories down 8 million barrels
– Gasoline stocks up 3.4 million barrels
– Distillate stocks up 1.5 million barrels
– Net crude imports down 249,000 barrels per day
Refinery Activity and Utilization Rates
The EIA reported that crude oil refinery inputs decreased by 90,000 barrels per day. However, refinery utilization rates rose by 0.2 percentage points to reach 94.7 percent during the same week.
These figures indicate strong refinery activity despite lower crude processing volumes.
Oil Prices React to Data
Following the report, oil futures were trading higher. Brent crude futures were priced at 97.52 dollars per barrel, up 1.52 dollars. US West Texas Intermediate crude rose by 1.58 dollars to 95.34 dollars per barrel.
Market analysts noted that the larger than expected decline in US oil inventories, combined with elevated export levels, contributed to upward price momentum.
Market Implications
The decline in US oil inventories reflects tightening supply conditions, potentially driven by strong exports and stable refinery demand. At the same time, the increase in gasoline and distillate stocks suggests evolving demand patterns in downstream fuel markets.
As global energy markets remain sensitive to geopolitical developments and supply disruptions, inventory data from the United States continues to play a key role in shaping price expectations.
Conclusion:
The latest EIA report shows US oil inventories falling by 8 million barrels, surpassing expectations and signaling shifting supply dynamics. While crude stocks declined sharply, gasoline and distillate inventories rose, highlighting mixed trends in the broader energy market.
