EIA: US crude and gasoline inventories dropped amid strong demand and reduced imports
Industry sources indicate that this drop reflects stronger-than-expected demand alongside a tighter supply environment. Analysts suggest that if these drawdowns continue, oil prices could see an upward push in the coming weeks.
The US Energy Information Administration (EIA) reported Wednesday that commercial crude and gasoline inventories in the country fell last week, with gasoline stocks hitting a two-year low on the back of strengthened demand.
For the week ending October 25, gasoline inventories declined by 2.7 million barrels to 210.9 million barrels, marking their lowest level since November 2021. Industry sources indicate that this drop reflects stronger-than-expected demand alongside a tighter supply environment. Analysts suggest that if these drawdowns continue, oil prices could see an upward push in the coming weeks.
Commercial crude inventories also unexpectedly decreased, falling by 515,000 barrels to 425.5 million barrels, in line with a 605,000 bpd decrease in net US crude imports. Notably, imports from Saudi Arabia saw a sharp reduction, plummeting to 13,000 bpd—their lowest level since January 2021—down from 150,000 bpd the prior week.
Refinery utilization rates dipped slightly by 0.4 percentage points to 89.1% of capacity, while US crude oil production held steady at a historic peak of 13.5 million bpd.
Written by: Rochelle Nguyen