US Oil Inventories Tighten as Demand Outpaces Supply

The Energy Information Administration report aligns with earlier figures from the American Petroleum Institute, confirming a sustained tightening of domestic supplies. Brent crude climbed to $80.12 per barrel, gaining 1.47%, while West Texas Intermediate followed suit with a 1.53% increase to $77.21. This price recovery offers a sharp pivot from the previous session's volatility.

Gasoline inventories also faced downward pressure, shedding 900,000 barrels as average daily production climbed to 10.1 million barrels. Conversely, middle distillate stockpiles grew by 1 million barrels, though they remain 13% below the five-year average despite a dip in daily production to 5.2 million barrels. Broad demand indicators remain robust, with total product supplied averaging 20.6 million barrels per day—a 3.3% increase over the same period last year. Gasoline and distillate demand metrics similarly reflect year-over-year growth, signaling that consumption continues to outstrip recent output adjustments.