U.S. Crude Stockpiles Shrink as Markets Shrug Off Geopolitical Risk

The latest figures from the Energy Information Administration place total commercial stocks 6% below the five-year seasonal average. This decline aligns with an earlier report from the American Petroleum Institute, which had estimated a more modest draw of 564,000 barrels. By mid-morning in New York, Brent crude had slid $0.65 to $84.08 per barrel, while WTI fell $0.21 to $79.13.

Refined product data presents a mixed outlook for domestic demand. Gasoline inventories tightened further, falling by 1.5 million barrels as daily production dipped to 9.6 million barrels. Conversely, middle distillate stockpiles surged by 4.6 million barrels, pushing inventories 11% below their five-year average. While total product supplied—a key proxy for overall demand—climbed 0.3% over the last four weeks compared to the previous year, distillate demand remains soft, trailing last year’s figures by 2.1%.