U.S. crude oil inventories fell by 8 million barrels last week, the Energy Information Administration said Wednesday. The decline, reported in the agency’s weekly petroleum status report, surprised analysts who had expected a smaller drawdown. It marks one of the steepest weekly drops in months.
The Numbers Behind the Drop
The EIA’s data covers the week ending Friday. Commercial crude stocks, excluding the Strategic Petroleum Reserve, now sit at roughly 435 million barrels. That’s about 4% below the five-year average for this time of year. The draw was roughly double the consensus estimate from industry surveys.
Gasoline inventories also fell, by 2.4 million barrels, while distillate stocks—which include diesel and heating oil—dropped by 1.2 million barrels. Refinery utilization edged up to 86.3% from 85.7% the prior week. Domestic crude production held steady at 13.3 million barrels per day.
Why Traders Are Watching
The inventory data comes as the market tries to gauge supply tightness ahead of the summer driving season. Falling stockpiles often support crude prices, but the reaction Wednesday was muted. Benchmark West Texas Intermediate crude traded near $81 a barrel, little changed after the report.
Analysts note that while the draw is large, much of the decline could stem from a jump in exports. U.S. crude exports rose to 4.9 million barrels per day last week, the EIA said, one of the highest levels on record. That suggests domestic demand wasn't necessarily surging—just that more oil was leaving the country.
What Could Come Next
The next weekly inventory report from the EIA is due next Wednesday. Traders will watch to see whether the drawdown continues or if stockpiles stabilize. The report also provides a fresh baseline for OPEC+ as the group considers production levels at its next meeting.
For now, the data doesn't point to an immediate supply crisis. But it does reinforce a trend: U.S. crude stockpiles have been trending lower since late February, and the pace of draws may accelerate as refineries ramp up output for summer fuel blends.
