U.S. Crude Inventories Fall As Brent Prices Soar

The U.S. Energy Information Administration reported on Thursday that commercial crude oil inventories declined by 400,000 barrels in the week ending Sept. 4, bringing stockpiles to 424.1 million barrels. That level is now roughly aligned with the five‑year average for this time of year. The EIA release followed American Petroleum Institute figures published a day earlier that showed a 300,000‑barrel drop for the same period.

Oil futures moved higher on the session alongside the inventory news. International Brent crude traded around $106 per barrel, roughly $4.79 (4.73%) higher on the day and about $12 above its level a week earlier. U.S. West Texas Intermediate was near $100.50 per barrel, up $4.45 (4.63%) on the day and approximately $11 higher than a week prior.

Refined product balances showed mixed changes. Gasoline inventories rose by 1.3 million barrels after a one-week fall, while average daily gasoline production slipped to about 9.3 million barrels per day. Middle distillate stocks climbed by 2.1 million barrels as production increased to roughly 5.3 million barrels per day; nevertheless, distillate inventories remain about 13% below the five‑year average.

Demand indicators point to weaker consumption compared with last year. Total products supplied — a common proxy for U.S. oil demand — averaged 20.1 million barrels per day over the most recent four weeks, down 3.7% from the same period a year earlier. The four‑week gasoline demand average was about 8.8 million barrels per day, and the distillate four‑week average supplied was roughly 3.7 million barrels per day, down 2.6% year‑on‑year.