EIA Reports Sharp Decline in Distillate Fuel Inventories

The U.S. Energy Information Administration (EIA) reported a sharp decline in distillate fuel inventories, drawing 2.228 million barrels for the week ending August 21.

This marks the second consecutive weekly draw, indicating tightening supply in the distillate segment, which includes diesel and heating oil.

As of the week ending August 21, total distillate inventories stood at approximately 120 million barrels, about 10% below the five-year average for this time of year, according to EIA data.

The drawdown is typically due to higher demand or reduced refinery output, and in this case, it suggests strong consumption or lower production during that week.