U.S. Crude Inventories Post Surprise Draw While Gasoline Stocks Swell, EIA Reports

U.S. commercial crude oil inventories fell last week, defying analyst expectations for a slight build, while gasoline stockpiles rose sharply, the Energy Information Administration (EIA) reported Wednesday. The mixed data reflects a complex picture of surging exports and fluctuating domestic fuel demand.

Oil futures maintained their gains following the report. U.S. West Texas Intermediate (WTI) crude was trading up $2.48 a barrel at $102.38, while global benchmark Brent crude rose $1.78 to $115.66 a barrel around 11 a.m. ET.

Key Inventory Changes

The EIA's report for the week ending October 23 showed a drawdown in crude and distillates but a large build in gasoline, diverging significantly from market forecasts.

• Crude Inventories: Fell by 1.9 million barrels to 410.6 million barrels, compared with analysts' expectations in a Reuters poll for a 15,000-barrel increase.
• Gasoline Inventories: Rose by 3.9 million barrels to 209.2 million barrels. Analysts had forecast a 0.9 million-barrel draw.
• Distillate Inventories: Stockpiles, which include diesel and heating oil, fell by 1.5 million barrels to 102.8 million barrels, a larger decline than the expected 0.9 million-barrel drop.

Crude stocks at the Cushing, Oklahoma, delivery hub for WTI futures also fell by 624,000 barrels. Inventories on the Gulf Coast declined to their lowest level since December 2024, the EIA said.

Exports Surge, But Data Questioned

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A primary driver for the crude drawdown was a significant increase in exports, which rose by 1.4 million barrels per day (bpd) to 4.85 million bpd. Net U.S. crude imports fell by 796,000 bpd.

"Energy stockpiles fell more than expected as exports took supplies away from the US," said David Russell, Global Head of Market Strategy at TradeStation. He added that falling distillate inventories, which remain below seasonal norms, offer "little hope for price relief in the near term."

However, some analysts questioned the scale of the export figures. Matt Smith, lead oil analyst at ship tracking firm Kpler, noted their own systems showed a discrepancy. "EIA appears to have significantly overestimated crude exports; observed loadings were about 1 million bpd lower than EIA reported, bringing other elements of the balance into question," Smith said.

Mixed Demand and Refinery Output

The data also pointed to shifting fuel consumption patterns. Total product supplied, a proxy for demand, fell by over 1 million bpd to 20.21 million bpd. This was largely driven by a 622,000 bpd drop in gasoline demand.

In contrast, demand for distillate fuels rose by 475,000 bpd, contributing to the inventory draw in that category. Refinery activity slowed slightly, with crude runs falling by 123,000 bpd and overall refinery utilization rates declining by 0.6 percentage points to 92.8% of capacity.