Crude Oil Inventories Expected to Decline
U.S. crude oil inventories are projected to have fallen by 1.9 million barrels during the week ending Dec. 20, according to a Reuters poll. This follows a previous week’s decline of 934,000 barrels, bringing total stockpiles to 421 million barrels. The Energy Information Administration (EIA) figures surpassed expectations for a 1.6-million-barrel draw.
Gasoline and Distillate Stock Changes
Analysts forecasted gasoline stockpiles to drop by 1.1 million barrels, while distillate inventories, including diesel and heating oil, were estimated to decrease by 300,000 barrels. However, market sources citing American Petroleum Institute data reported a different trend. Gasoline inventories rose by 3.9 million barrels, while distillate stocks declined by 2.5 million barrels.
Refinery Utilization Declines Marginally
The rate of refinery utilization saw a slight decrease of 0.4 percentage points from the previous week’s 91.8%. Lower refinery rates often correlate with reduced output, which can impact both crude oil processing and fuel production.
API Data Confirms Stockpile Movements
According to the American Petroleum Institute (API), crude oil stocks fell by 3.2 million barrels during the week, exceeding earlier projections. This decline highlights stronger-than-expected demand or tighter supply conditions. Gasoline inventories, however, saw a significant build, potentially driven by lower consumer demand amid the holiday season.
Delayed EIA Report Due to Holiday Schedule
The EIA’s weekly petroleum status report, typically released on Wednesday, faced a delay due to the Christmas holiday. The updated figures are now expected on Friday, Dec. 22. This report is anticipated to provide clarity on the trends suggested by API data.
Broader Implications for Oil Markets
Stockpile adjustments come as global oil markets remain sensitive to shifts in supply and demand. Factors like refinery output, seasonal demand changes, and geopolitical developments continue to shape price movements. Analysts will closely monitor upcoming reports for indications of future trends.