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US commercial crude oil inventories fell by 1 million barrels for the week ending January 17, 2025, extending a nine-week streak of declines, according to the Energy Information Administration (EIA). However, the decrease fell short of expectations, as a Reuters analyst poll had projected a steeper drop.

At 411.7 million barrels, US crude stockpiles are approximately 6% below the five-year average for this time of year, raising questions about supply resilience amid fluctuating market conditions.

Refinery utilisation rates saw a significant drop, falling to 85.9% from 91.7% the previous week. This sharp decrease underscores a notable slowdown in refinery activity, potentially signalling weaker downstream demand or operational challenges.

Despite reduced refinery activity, gasoline inventories continued to rise, increasing by 2.3 million barrels to reach 245.9 million barrels. This contrast highlights potential imbalances in product supply and demand dynamics.

Crude oil imports surged by 621,000 barrels per day (bpd) compared to the prior week. Over the past four weeks, imports have averaged 6.6 million bpd, reflecting a modest year-on-year increase of 0.3%.

Meanwhile, US crude oil production held steady at 13.4 million bpd, suggesting that domestic output remains resilient despite external market pressures.

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Written by: Muhammad Hafiz