U.S. Crude Inventories Drop Sharply as Production Stalls

Commercial crude inventories now sit at 412.5 million barrels, trailing the five-year seasonal average by 3%. This drawdown was fueled by a sharp reduction in domestic output, which dipped to 13.3 million barrels per day—a decline of 410,000 barrels from the previous week. Much of this volatility stems from offshore disruptions in the Gulf following Hurricane Isaias, which hindered extraction efforts despite restoration attempts.

Downstream, the picture remains mixed. While gasoline inventories fell by 3 million barrels to 205.3 million as demand climbed to 9 million barrels per day, distillate fuel stocks moved in the opposite direction. Distillates increased by 1.7 million barrels to 104.3 million, defying expectations of a drawdown even as demand for the product softened. Meanwhile, at the Nymex delivery hub in Cushing, Oklahoma, stored oil rose by nearly 1 million barrels, providing a localized buffer amid the broader national supply contraction.