According to the Energy Information Administration, US crude oil stocks dropped unexpectedly by 500,000 barges in the week ending October 25.
The US oil inventories were 425.5 million barrels, which was about 4% less than the five-year average for this time of year.
Analysts expected crude oil stocks to increase by 1.5 million barrels in the US last week.
In its weekly report, the EIA reported that refineries were operating at 89.1% for the week ending October 25.
The unexpected drop in US oil stocks also supported global prices.
Brent crude oil was trading at $74.08 a barrel, an increase of 1.7% over the previous close.
Product stocks fall
According to data, gasoline stocks in the US dropped by 2.7 millions barrels to 210.9million barrels last week.
The distillate stockpiles fell by 1,000,000 barrels, to 112.9 millions barrels.
EIA reported that gasoline and distillate inventories were 3% and 10% below the five-year mean.
Last week, residual fuel oil stocks fell by 1,000,000 barrels and reached 24.2 million barrels. Propylene and propane stocks also declined by 200,000 barrels bringing them to 101.5 millions barrels.
Production
Crude oil production in America was unchanged at 13.5 million barrels a day for the week ending October 25.
In a report published each month, the agency reported that crude oil production rose 1.5% to a record monthly level of 13,4 million barrels a day in August. This was higher than the previous record of 13.31 millions barrels per day in December 2023.
In the top oil-producing state of Texas, production rose 1.7% to a new record of 5.82 million barrels a day in August, while New Mexico saw a 2.8% increase to a new record of 2.09 million barrels a day.
Imports and Exports
Crude oil imports fell by 456,000 barrels a day to 5.98 millions barrels a day last week.
As of last week, the four-week import average was 6.04 million barrels per day, down 2.2% compared to the same period a year earlier.
The data showed that US exports increased by 149,000 barrels each day last week, to 4.26 million barrels.
As of last week, the four-week export average was 10% lower than a year ago at 4,07 million barrels per daily.
Last week, imports from Mexico increased the most by 363,000 barrels a day to 621,000 barrels a day.
Last week, imports of crude from Colombia dropped by the most amount – 215,000 barrels a day – to 150,000 barrels a day.
Last week, crude oil stocks at Cushing, Oklahoma – the delivery point for WTI crude – rose by 700,000 bbls to 25,4 million bbls.
The Strategic Petroleum Reserve of the US increased by 1.2 million barrels, to 385.8 millions barrels on October 25.
The US government recently expressed an interest in buying up to 3,000,000 barrels of crude to replenish its strategic reserves.
The ICD first published the article Unexpected drop in US crude oils inventories: 500,000 barrel decline recorded last week.
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