US Crude Oil Stocks Drop 11.12 Million Barrels in Biggest Decline Since January
American crude oil inventories recorded a sharp decline of 11.12 million barrels for the week ending October 9. The massive drop caught markets by surprise, as forecasts had anticipated a supply build of 1.9 million barrels. This marks the largest single-week inventory reduction since late January, following a smaller decline of 2.09 million barrels in the preceding week.
The inventory contraction was partially offset by developments at key storage hubs and product categories. Storage levels at the Cushing, Oklahoma delivery point rose by 1.82 million barrels, expanding on the 866,000-barrel increase from the prior period. Meanwhile, gasoline stocks built up by 1.1 million barrels during the week ending October 7, whereas distillate supplies fell by 1.5 million barrels.
On the supply side, domestic crude production climbed to 13.98 million barrels per day in the week ending October 2, up from 13.95 million barrels per day the week before. Crude Oil Futures (NYMEX:CL1!) traded essentially unchanged following the report, up 0.01% at $95.10 per barrel. Investors will monitor whether elevated domestic output impacts future inventory trends.
Key points
- US crude oil stocks dropped by 11.12 million barrels in the week ending October 9, the largest decline since late January.
- The draw far exceeded market expectations, which had called for a 1.9 million-barrel increase in crude stockpiles.
- Cushing crude inventories increased by 1.82 million barrels, while distillate stocks fell by 1.5 million barrels.
- Gasoline stocks grew by 1.1 million barrels, and domestic oil production ticked up to 13.98 million barrels per day.
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By how much did US crude oil inventories decrease?
US crude oil inventories dropped by 11.12 million barrels in the week ending October 9, marking the largest single-week drawdown since late January.
How did the inventory drop compare to market expectations?
Market expectations had anticipated a supply build of 1.9 million barrels, making the actual 11.12 million-barrel drawdown a major surprise.
What happened to US crude oil production during this period?
US crude oil production rose to 13.98 million barrels per day in the week ending October 2, up from 13.95 million barrels per day in the preceding week.