U.S. Oil Inventories Decline as Refining Demand Surges
Crude and distillate stockpiles fall sharply, while gasoline inventories rise, driven by holiday season consumption and refinery activity.
- U.S. crude oil inventories dropped by 4.2 million barrels last week, surpassing analysts' expectations of a 1.9 million-barrel decline, according to the Energy Information Administration (EIA).
- Distillate stocks, including diesel and heating oil, fell by 1.7 million barrels, while gasoline inventories rose by 1.6 million barrels due to strong refinery processing.
- Refinery utilization increased to 92.5%, with crude runs rising by 205,000 barrels per day, reflecting robust refining demand during the holiday season.
- Oil prices gained slightly, with Brent crude reaching $74.18 per barrel and West Texas Intermediate (WTI) crude at $70.62 per barrel, supported by U.S. inventory data and optimism over China's economic stimulus plans.
- China's announcement of 3 trillion yuan ($411 billion) in special treasury bonds for 2025 and an improved economic growth forecast also bolstered market sentiment for increased future oil demand.