U.S. Oil Stocks Drop as Fuel Demand Weakens

Recent U.S. Energy Information Administration data reveals a weakening in fuel demand, causing a decline in oil stocks. Crude oil inventories dropped by 4.5 million barrels last week, raising commercial stocks to 424.5 million barrels, inching 1% above the five-year average for this period. The U.S. Energy Administration's report corroborates the American Petroleum Institute's earlier figures, which indicated a 2.6 million barrel decrease in crude oil inventories.

Crude futures slid to $101.8 per barrel in New York trading, down $0.64 or 0.68% for the day. Meanwhile, Brent futures decreased to $94.01 per barrel, falling $0.64 or 0.68% on the day but up roughly $7 per barrel compared to the same time last week. West Texas Intermediate (WTI) also saw a decline of $0.98 per barrel or 1.09% in Wednesday morning trading at $89.24, up about $8 per barrel since this time last week.

Gasoline inventories decreased by 1.2 million barrels, following a 2.5 million barrel decline the week before. Average daily gasoline production remained steady at 9.8 million barrels. Middle distillates inventory rose by 800,000 barrels, but production dropped to an average of 5.1 million barrels daily, marking a 14% dip from the five-year average.

Overall, total products supplied, a gauge for U.S. oil demand, averaged 20.4 million barrels per day over the past four weeks, a 4% decrease compared to the same period last year. Gasoline demand averaged 8.9 million barrels daily over the last four weeks, while distillate demand averaged 3.7 million barrels, a 6% drop year-over-year.