US Crude Inventories Drop by 600,000 Barrels, But Total Stocks Remain Above Average

US crude oil inventories dropped by 600,000 barrels for the week ended September 11, according to the Energy Information Administration. However, this decline does not indicate a tight supply market, as total stocks remain 1% above the five-year average at 423.4 million barrels.

The divergence between crude and total commercial petroleum inventories is notable. Crude inventories fell, while other petroleum products built up across the system. This kind of split is common during periods of heavy refinery activity, where refiners pull crude out of storage to process it and push finished products into the supply chain.

Gasoline and distillate stocks moved in opposite directions from their five-year averages. Gasoline inventories added 800,000 barrels but are still 5% below average. Distillates, on the other hand, posted a stronger build of 1.6 million barrels but remain 13% below their respective five-year averages.