US Oil Prices Rise as Gasoline and Distillate Stocks Hit Record Lows
The Energy Information Administration reported significant draws in gasoline and distillate fuels, driving oil prices higher despite a surprise increase in commercial crude inventories.
Oil prices reached session highs on September 30 after the Energy Information Administration released inventory data showing significant draws in gasoline and distillate fuels. Gasoline stocks fell by approximately 1.7 million barrels, with Midwest inventories hitting record lows, while distillate fuel stockpiles dropped by 2.3 million barrels to their lowest seasonal levels on record. Both categories now remain below their five-year averages.
In contrast to analyst expectations of a 200,000-barrel decline, commercial crude inventories actually rose by roughly 900,000 barrels to 427.3 million barrels for the week ending September 25. This increase was partially offset by a 785,000-barrel withdrawal from the Strategic Petroleum Reserve. Crude production increased slightly to 14 million barrels a day, while imports fell to 5.7 million barrels a day, though Brazilian imports specifically reached a seasonal high of nearly 500,000 barrels per day.
Refinery activity slowed during this period, with capacity utilization dropping to 92.5% from 94% the previous week. Crude processing fell to its lowest level since May, with consumption decreasing by 1.3 million barrels a day over the last three weeks. Meanwhile, inventories at the Cushing, Oklahoma storage hub rose to 24 million barrels, the highest level since May.
