EIA Reports 3M Barrel Crude Build as Distillate Stocks Fall 12% Below Average

U.S. commercial crude oil inventories rose by 3 million barrels in the week ending Sept. 18, according to data the Energy Information Administration published Wednesday. The increase brought national crude stockpiles to 426.4 million barrels, which the EIA said is roughly 2% above the five-year average for this time of year. The agency's release followed a slightly smaller build reported a day earlier by the American Petroleum Institute, which estimated a 1.786 million-barrel increase.

Product-side inventories showed mixed moves: total motor gasoline supplies fell by 1.7 million barrels after a one-week gain of 800,000 barrels, while middle distillates — which include diesel and heating oil — declined by 400,000 barrels. The EIA reported that distillate inventories now sit about 12% below the five-year average. The agency also noted average daily production of gasoline at 9.6 million barrels and distillate production at 5.2 million barrels for the week.

U.S. oil demand measures were relatively robust over the recent month. Total petroleum products supplied, a proxy for demand, averaged 20.6 million barrels per day over the last four weeks, an increase of 0.5% versus the same period a year earlier. The four-week gasoline demand average was 8.8 million barrels per day, while the distillate four-week average supplied was 3.6 million barrels per day, down 0.3% year over year.

Market reaction on Wednesday morning showed futures climbing despite the crude build: Brent futures were trading around $101.40 per barrel, up $2.15 on the day, while West Texas Intermediate futures were near $92.00, up $1.47. Both contracts remained lower compared with the same time the prior week, with Brent down roughly $6 and WTI down about $10 per barrel since that point.