US Crude Reserves Drop as Global Oil Prices Climb

The government data aligns closely with figures released a day earlier by the American Petroleum Institute, which estimated a draw of 2.031 million barrels. Following the report, market volatility intensified: Brent crude climbed $1.73 to reach $115.61 per barrel, while West Texas Intermediate surged $2.51 to trade at $102.41. Both benchmarks have posted significant weekly gains, reflecting persistent tightness in the physical market.

Refinery output remains a mixed picture. While motor gasoline inventories rose by 3.9 million barrels following a previous week of decline, daily gasoline production fell to 9.2 million barrels. Simultaneously, middle distillate stockpiles dropped by 1.5 million barrels, leaving them 10% below their five-year average. Despite these fluctuations, overall demand remains resilient, with total products supplied averaging 20.8 million barrels per day over the last four weeks—a 0.2% increase compared to the same period last year.