U.S. crude inventories rose 900,000 barrels in the week ending September 25, the EIA reported, lifting stockpiles to 427.3 million barrels. Diesel stocks kept shrinking and now sit 14% below their five-year average, while WTI and Brent crude both traded higher on the day.
Crude stockpiles climb again
U.S. commercial crude inventories rose 900,000 barrels in the week ending September 25, the Energy Information Administration reported. That lifted total stockpiles to 427.3 million barrels — now 2% above the five-year seasonal average. The build followed a similar signal from the American Petroleum Institute, which a day earlier had reported a 1.019 million-barrel increase for the same week.
The increase also defied market expectations. Traders had priced in a decline of 264,000 barrels before the release, so the unexpected build ran against the consensus call.
Diesel stocks fall 14% below average
Middle distillate inventories fell 2.3 million barrels, the EIA said, as refiners trimmed production to an average of 5 million barrels a day. That leaves distillate stocks 14% below the five-year average. Gasoline inventories also declined, dropping 1.7 million barrels as daily production held near 9.5 million barrels.
Demand held up despite the swings in stock levels. Total products supplied — a proxy for U.S. oil demand — averaged 20.8 million barrels a day over the last four weeks, up 2.1% from the same period last year, while distillate demand rose 5.2% year over year to 3.8 million barrels a day.
WTI and Brent extend gains
Crude prices climbed through the release. WTI traded at $90.76, up $1.38 on the day, while Brent changed hands at $103.34, up $0.75. WTI stayed below where it traded a week earlier, down about $1.25 a barrel, while Brent moved higher over the same span, up roughly $2.
On the hourly chart, WTI's rebound has carried it back toward $91.45, a 38.2% retracement level, with the nearly converged 100- and 200-hour moving averages near $92.75 marking the next test for buyers. A sustained break below $88.80 would shift the bias back toward sellers, opening a path toward the 50% retracement at $86.79.
Energy prices feed into inflation, but investinglive noted that one weekly inventory report is unlikely to change the Fed's policy outlook.
Sources: Oilprice.com, Investinglive
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