U.S. Oil Inventories Stagnate as Gasoline Demand Softens

The report highlights a sharper shift in refined products, where gasoline inventories dropped by 2.5 million barrels despite a rise in daily production to 9.8 million barrels. Meanwhile, middle distillate stocks grew by 2.2 million barrels, though they remain 14% below the five-year average. These figures arrive amid cooling demand metrics; total product supplied, a key proxy for consumption, averaged 20.5 million barrels per day over the last month, marking a 3.0% decline from the previous year.

Investors responded with caution on Wednesday morning as both major benchmarks retreated. Brent crude fell $1.58 to $86.94 per barrel, while WTI dropped $1.22 to $81.14. These prices reflect a significant correction from the previous week, with both benchmarks down by several dollars per barrel. The EIA figures offer a more conservative view than the American Petroleum Institute’s earlier estimate, which had projected a much steeper build of 4.2 million barrels for the same period.