Crude Oil and Gasoline Inventories Decline Amid Tighter Supply-Demand Conditions
A recent survey suggests that U.S. crude oil and gasoline inventories declined last week, while distillate inventories remained steady. According to preliminary data, U.S. crude oil inventories dropped by approximately 1.1 million barrels for the week ending September 25. This decline has heightened expectations of tighter supply-demand conditions in the market.
The decrease in U.S. crude oil inventories and gasoline inventories also weighed on prices. Gasoline inventories fell by about 500,000 barrels during the same period, which is favorable for gasoline spot prices and created upward momentum. However, distillate inventories are expected to remain unchanged.
The neutral impact of distillate inventories on prices is due to a lack of significant bullish or bearish drivers in the supply-demand balance. This suggests that distillate prices will likely continue trading within a range.