US Crude Inventories Fall 391,000 Barrels as Refineries Surge
US crude oil inventories dropped by 391,000 barrels to 424.1 million, driven by strong refinery activity that boosted gasoline and diesel stocks.
The US Energy Information Administration reported a decline in crude oil inventories of 391,000 barrels on the week ending September 4. Current levels stand at 424.1 million barrels, which was slightly better than analyst predictions of a 1.55 million barrel drop. In contrast, stocks of gasoline and other distillates increased significantly due to robust refining operations. The primary storage facility in Cushing, Oklahoma, saw its crude inventory decrease by 684,000 barrels during the same period. Consequently, oil futures traded above $100 per barrel on Thursday following the release. Matt Smith of Kpler, a shipping tracking firm, attributed the strong decline to high refinery margins driving maximum operational capacity while imports and exports managed net storage changes.
