EIA: US Commercial crude oil inventories decline by 1.72M, against expectations of a 1.38M increase

The weekly report from the US Energy Information Administration (EIA) showed a decline in crude oil inventories of 1.725M against expectations of an increase by 1.38M during the week ending October 14.  Cushing crude oil inventories rose by 583K and gasoline inventories by declined by 114K.

Key takeaways:

• US crude oil refinery inputs averaged 15.6 million barrels per day during the week ending October 14, 2022 which was 132,000 barrels per day less than the previous week’s average.
   
• Refineries operated at 89.5% of their operable capacity last week. Gasoline production increased last week, averaging 9.4 million barrels per day. Distillate fuel production increased last week, averaging 5.0 million barrels per day.
   
• US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 1.7 million barrels from the previous week. At 437.4 million barrels, U.S. crude oil inventories are about 2% below the five year average for this time of year

Market reaction

Crude oil prices remained steady after the report, holding onto to modest daily gains. The West Texas Intermediate (WTI – cash) rose to test the daily high around $83.40 and then pulled back toward $82.50.