The US Energy Information Administration (EIA) reported that commercial crude oil inventories, excluding the Strategic Petroleum Reserve, decreased by 6.1 million barrels to 412.1 million barrels during the week ending June 19. This decline occurred despite a rise in crude oil imports and sustained high refinery operations, according to data released on June 25.
Inventory levels below five-year average
The EIA stated that inventory levels were 7 per cent below the five-year average for this time of the year. The agency noted, "Commercial crude oil inventories (excluding the Strategic Petroleum Reserve) decreased by 6.1 million barrels." The drawdown brought total stocks to 412.1 million barrels.
Refinery operations and production
US refineries processed 17.1 million barrels per day (b/d) of crude oil during the week, a decrease of 81,000 b/d from the previous week. Refinery capacity utilisation stood at 96.1 per cent, indicating near-maximum processing levels. Gasoline production averaged 9.5 million b/d, while distillate fuel production rose to 5.2 million b/d.
Crude oil imports rise
Crude oil imports increased by 436,000 b/d to 5.6 million b/d. However, the four-week average of crude oil imports was 5.7 million b/d, which was 4 per cent lower than the level recorded during the same period a year ago. Gasoline imports averaged 647,000 b/d during the week, and distillate imports averaged 135,000 b/d.
Other petroleum product inventories
While crude inventories declined, inventories of other petroleum products increased. Gasoline inventories rose by 2.1 million barrels but remained 5 per cent below the five-year average. Distillate fuel inventories increased by 3.1 million barrels and were still 10 per cent below the five-year average. Propane and propylene inventories increased by 2.6 million barrels and were reported to be 35 per cent above the five-year average. Overall, total commercial petroleum inventories declined by 0.5 million barrels during the week.
Demand trends mixed
The EIA also highlighted fuel demand trends in the US. Over the past four weeks, total products supplied averaged 20.5 million b/d, representing a 2 per cent increase compared to the same period last year. Gasoline implied demand, a key indicator of fuel consumption, declined by 3 per cent to 8.8 million b/d. In contrast, distillate implied demand increased by 3 per cent to 3.6 million b/d. Jet fuel demand also showed growth, with implied demand rising 1 per cent compared to the corresponding period last year.
The latest data indicates a drawdown in US crude oil inventories amid strong refinery activity, while demand trends remained mixed across different fuel categories. (ANI)
