US crude stocks, gasoline and distillate inventories fall, EIA says

• Crude stocks at Cushing, Oklahoma delivery hub decreased by 648,000 barrels during the week
• Gasoline inventories fell 2.5 million barrels to 219.8 million barrels, slightly exceeding the expected 2.1 million-barrel draw
• Distillate stockpiles dropped 1.3 million barrels to 102.3 million barrels, less than the anticipated 2.4 million-barrel decline, while net U.S. crude imports rose by 1.42 million barrels per day

US Energy Inventories Decline Across All Categories

Key Developments:

The U.S. Energy Information Administration (EIA) reported broad declines in petroleum inventories for the week ended May 1. Crude oil stocks fell by 2.3 million barrels to 457.2 million barrels, slightly below the Reuters poll consensus of a 3.3 million-barrel draw. At the critical Cushing, Oklahoma delivery hub, crude inventories decreased by 648,000 barrels.

Product Inventories:

Gasoline stocks dropped 2.5 million barrels to 219.8 million barrels, exceeding analyst expectations of a 2.1 million-barrel decline. Distillate inventories, encompassing diesel and heating oil, fell 1.3 million barrels to 102.3 million barrels—less than the anticipated 2.4 million-barrel draw.

Refinery Operations:

Refinery crude runs decreased by 42,000 barrels per day, while utilization rates climbed 0.5 percentage points to 90.1%. Net U.S. crude imports surged by 1.42 million barrels per day during the reporting period.

Market Impact:

Oil futures extended losses following the report's release. Global Brent crude fell $7.81 to $102.06 per barrel, while West Texas Intermediate dropped $7.08 to $95.19 per barrel at 10:36 a.m. ET.

Analysis:

The inventory drawdowns across crude, gasoline, and distillates signal robust domestic demand, though the smaller-than-expected crude decline may have contributed to downward price pressure. The significant increase in net imports suggests U.S. refiners are sourcing additional foreign barrels to meet consumption needs amid high utilization rates. The simultaneous drop in oil prices despite inventory draws indicates other market factors, potentially global economic concerns, are dominating sentiment.