US Crude Inventories Hits Lowest Level in a Year, Fuel Builds, EIA Says

Stockpiles at the Cushing hub were at 22.7 million barrels, their lowest level in almost a year.

SEATTLE (Scrap Monster): U.S. crude oil stockpiles dipped to their lowest level in a year last week, while fuel inventories rose, the Energy Information Administration (EIA) said on Wednesday.

Crude inventories fell by 1.6 million barrels to 417.5 million barrels in the week ending Sept. 13, the EIA said, compared with analysts' expectations in a Reuters poll for a 500,000-barrel draw.

Stocks, excluding the Strategic Petroleum Reserve, hit their lowest level since September 2023. In the Midwest, crude inventories declined to their lowest since December 2014.

At the Cushing, Oklahoma, delivery hub for U.S. crude futures, stocks fell by 2 million barrels, the EIA said.

Oil futures pared losses following the report. Brent futures were trading at $73.53 a barrel, down 17 cents by 11:04 a.m. EDT (1504 GMT). U.S. West Texas Intermediate crude futures were down 9 cents at $71.10 a barrel. Both benchmarks had traded around 70 cents lower on the day earlier in the session.

'The most interesting development remains another draw at Cushing - now down 10 out of 11 weeks,' said Matt Smith, an analyst for ship tracking firm Kpler.

Stockpiles at the Cushing hub were at 22.7 million barrels, their lowest level in almost a year.

'Cushing inventories are falling to concerning low levels - near tank bottoms,' said Josh Young, chief investment officer at Bison Interests.

Net U.S. crude imports fell by 1.8 million barrels per day, the EIA said, as port activity along the U.S. Gulf Coast slowed due to Hurricane Francine.

The EIA's adjustment number, which tracks unaccounted crude, was 827,000 barrels, a change of 1.29 million barrels over the prior weeks.

Refinery crude runs fell by 282,000 barrels per day, and refinery utilization rates slipped 0.7 percentage point to 92.1% of total capacity.

Distillate stockpiles, which include diesel and heating oil, rose by 100,000 barrels to 125.1 million barrels, versus expectations for a 600,000-barrel rise.

U.S. gasoline futures and heating oil futures turned positive following the smaller-than-expected build in fuel inventories.

Courtesy: www.reuters.com