United States crude oil inventories dropped more than expected during the final week of September and early October, declining by 3.2 million barrels to reach 424.1 million barrels for the week ending October 2, according to official figures released by the US Energy Information Administration.
The large withdrawal defied market expectations. Instead, the reported drop marked the largest inventory decline in five weeks, standing in stark contrast to expectations of a 1.7 million barrel increase or a 1.9 million barrel rise reported across market commentary.
Energy markets and trading desks reacted immediately to the official government figures. Futures contracts trimmed some of their earlier gains following the publication of the data. Brent crude futures rose 91 cents to trade at $101.49 per barrel by 14:36 GMT, while US West Texas Intermediate futures increased by 13 cents to reach $89.57 per barrel, according to data cited by Roayah News.
US Refinery Throughput Reaches Highest Increase in Ten Weeks
The steeper-than-expected drawdown in crude inventories unfolded alongside higher activity levels within domestic refineries. US refinery crude oil throughput grew by 223,000 barrels per day during the week, lifting operating rates by 0.2 percentage points to reach 92.7%. This expansion in processing marked the largest increase in ten weeks, showing strong local refining demand even as overall crude stocks fell.
Refined petroleum products displayed mixed movements during the same weekly cycle. Gasoline inventories rose by 400,000 barrels—or 382,000 barrels in specific terminal tallies—bringing total US gasoline stocks to 204.7 million barrels. This increase directly contradicted analyst projections that had pointed toward a 1.7 million barrel reduction. Meanwhile, distillate fuel inventories, which encompass diesel and heating oil, remained virtually unchanged at 105.1 million barrels, falling short of analyst expectations for a 2.1 million barrel draw.
Storage figures at key delivery hubs also registered gains. Crude inventories at the Cushing, Oklahoma delivery hub rose by 444,000 barrels, extending an upward trend for a second week following a previous build of 553,000 barrels.
API Data Shows Initial Crude Inventory Decrease
On Tuesday, energy market sources pointing to API data had reported an initial crude inventory decrease of 2.09 million barrels, accompanied by a 1.37 million barrel drop in gasoline stocks and a modest build in distillate products, as noted by Erem News.
Broader supply pressures and strategic reserves have continued to shape American energy markets. The federal strategic petroleum reserve stood at 283 million barrels following a 0.8 million barrel decrease over the course of the week. Previous drawdowns over recent years—including historic releases totaling 172 million barrels aimed at calming global markets—had earlier brought strategic stockpiles down to multi-decade lows not seen since October 1982.
Net US crude imports, inclusive of strategic reserve movements, dropped by 53,000 barrels per day over the week, with total crude imports averaging 6.84 million barrels per day compared to 5.69 million barrels per day the previous week. Higher inbound shipments from suppliers such as Canada, Nigeria, Guyana, and Saudi Arabia were partially offset by reductions from Brazil and Argentina.
Unresolved Market Questions
Despite the sharp decline in commercial crude stocks and ongoing adjustments in refinery operations, questions remain regarding how sustainable these supply-demand dynamics will prove through the final quarter of the year. Analysts continue to monitor whether increased refinery throughput will outpace market absorption rates for refined products, particularly as gasoline builds counteract the bullish signals sent by the unexpected drawdown in crude. The ultimate trajectory of regional production constraints, ongoing Middle Eastern disruptions, and the pace of future inventory draws make it unclear how prices will stabilize in the weeks ahead.
