US crude stocks, gasoline and distillate inventories fall - EIA

• Crude inventories decreased to 459.5 million barrels, a draw nearly 27 times larger than the expected 231,000-barrel decline
• Gasoline stocks fell 6.1 million barrels (versus 2.1 million expected) while distillate inventories dropped 4.5 million barrels (versus 2.2 million expected)
• Refinery utilization increased by 0.5 percentage points and crude runs rose by 84,000 barrels per day, while net crude imports dropped by 1.97 million barrels per day

US Petroleum Inventories Post Larger-Than-Expected Declines

Key Figures:

The U.S. Energy Information Administration (EIA) reported significant inventory drawdowns for the week ended April 24:

• Crude oil stocks fell 6.2 million barrels to 459.5 million barrels, far exceeding analyst expectations of a 231,000-barrel decline
• Gasoline inventories dropped 6.1 million barrels to 222.3 million barrels (versus forecasts of a 2.1 million-barrel draw)
• Distillate stocks decreased 4.5 million barrels to 103.6 million barrels (compared to expected 2.2 million-barrel drop)
• Crude stocks at Cushing, Oklahoma hub fell 796,000 barrels

Market Impact:

Oil futures rallied approximately 5% following the data release on April 29. Brent crude climbed $5.59 to $116.85 per barrel, while WTI gained $4.74 to reach $104.67 per barrel by 10:38 a.m. ET.

Supply-Demand Indicators:

• Refinery crude runs increased 84,000 barrels per day
• Refinery utilization rates rose 0.5 percentage points
• Net U.S. crude imports dropped significantly by 1.97 million barrels per day

Analysis:

The substantially larger-than-anticipated inventory declines across all major petroleum products signal robust demand and tightening supply conditions in the U.S. market. The sharp drop in crude imports combined with increased refinery activity suggests refiners are drawing down existing stocks to meet demand. These developments support bullish sentiment in oil markets, particularly amid already elevated price levels above $100 per barrel for WTI and near $117 for Brent crude.