The Energy Information Administration reported Wednesday that US crude oil inventories declined by 3.8 million barrels in the week ended June 26, leaving total crude stocks at 408.4 million barrels. The reduction fell short of market expectations, which had called for a 4.5 million-barrel decrease.
Storage at the nation\'s principal delivery point, the Cushing, Oklahoma hub, registered an increase of 709,000 barrels over the same reporting period, according to the EIA.
Refining activity showed a modest uptick. Refinery crude runs rose by 85,000 barrels per day and refinery utilization rates increased by 0.5 percentage points for the week, indicating slightly higher processing throughput among US refineries.
Product inventories displayed divergent moves. Gasoline stocks declined by 2.3 million barrels to 214.0 million barrels, a draw that exceeded analyst projections for a 1.0 million-barrel reduction. In contrast, distillate inventories - the category that includes diesel and heating oil - expanded by 2.5 million barrels to 108.6 million barrels. That build ran counter to forecasts that had anticipated a 0.5 million-barrel draw.
On the trade side, net US crude imports increased by 370,000 barrels per day during the reported week, according to the EIA. The rise in imports contributed to the overall supply balance even as domestic stockpiles moved lower.
The combination of a smaller-than-expected crude draw, a larger-than-expected gasoline draw, and an unexpected distillate build presents a mixed snapshot for market participants. Refiners recorded higher feedstock runs and utilization, while inventories at the Cushing delivery point rose, reflecting localized flows into storage.
Market participants monitoring supply dynamics for refined fuels will note the larger gasoline draw alongside higher crude imports and refinery throughput. The distillate build, meanwhile, alters the supply picture for diesel and heating oil, sectors that are sensitive to inventory fluctuations.
Data highlights
- US crude change: -3.8 million barrels to 408.4 million barrels (week ended June 26)
- Cushing stocks: +709,000 barrels
- Refinery crude runs: +85,000 barrels per day; utilization +0.5 percentage points
- Gasoline: -2.3 million barrels to 214.0 million barrels (expected -1.0 million)
- Distillates: +2.5 million barrels to 108.6 million barrels (expected -0.5 million)
- Net US crude imports: +370,000 barrels per day