U.S. Oil Stocks Plunge by 9 Million Barrels as Exports Surge

The massive draw caught markets by surprise, as a Wall Street Journal survey of analysts had predicted a modest 1.1 million-barrel increase. Instead, total commercial stocks fell to 419.8 million barrels. This divergence was fueled by a significant shift in trade flows: crude imports dropped by 281,000 barrels per day (bpd), while exports jumped by 851,000 bpd to reach a weekly average of 4.6 million bpd.

Downstream activity also intensified, with refineries operating at 91% capacity, up from 89.4% the previous week. This increased throughput contributed to a 3.2 million-barrel drop in gasoline inventories—the first decline in 14 weeks—as consumer demand for the fuel climbed to 8.7 million bpd. Distillate fuel stocks, which include diesel and heating oil, saw an even steeper withdrawal of 4.6 million barrels, far exceeding the 1.4 million-barrel decline projected by experts.

Regional Stocks and Supply Metrics

At the Cushing, Oklahoma delivery hub, inventories fell by 1.1 million barrels to 24 million. While commercial stocks shrank, the federal government continued to slowly replenish the Strategic Petroleum Reserve, which saw an increase of 229,000 barrels. Despite the draw in stored crude, domestic extraction remains near record highs, according to the EIA.

• U.S. crude production edged up to 13.7 million bpd.
• Total gasoline stocks remain 3% above the five-year average despite the recent draw.
• Distillate inventories currently sit 5% below the five-year average for this time of year.