Crude Oil Inventories Plummet as US Refinery Throughput Surges

The US Energy Information Administration (EIA) released its weekly report on crude oil and product inventories, revealing a significant surprise to the market. Crude oil inventories in the United States fell by 7.2 million barrels to 404.5 million barrels, far exceeding the expected drop of only 0.6 million barrels.

This decline was driven by lower imports, higher exports, and increased refinery throughput. The strategic petroleum reserve (SPR) also saw a drop of 3.8 million barrels to 307.7 million barrels due to continued release of emergency reserves.

Refinery activity reached a high utilization capacity of 97.2%, with an increase in throughput by 271 thousand b/d to 17.3 million b/d, contrary to forecasts predicting a decline in utilization.