EIA: Exports Draw Down Crude Oil, Product Inventories

VIENNA (DTN) – U.S. commercial crude oil inventories fell by 600,000 bbl to 414.8 million bbl last week, according to Energy Information Administration data on Wednesday (9/24) that showed sockpiles slumping amid a blistering pace of exports.

Crude stockpiles rose 0.4% year-on-year for the week ended September 19, but fell 4% below the five-year seasonal average. 

Exports were at 4.484 million bpd for the reference week, down from the prior week’s 5.277 million bpd, when they hit a 21-month high. 

Still, exports were some 300,000 bpd higher than the average pace of the past four weeks.

Also, exports for the week ended September 19 were more than 200,000 bpd above year-ago levels, marking a 5.4% year-on-year increase.

On the cumulative daily average, however, crude oil exports continued to lag 2024 levels at 286,000 bpd, or 6.9%, year-on-year.

Combined exports of oil and products rose by more than 100,000 bpd on the week to a five-month high 11.662 million bpd. Total product exports bounced back from last week’s trough, spearheaded by a 705,000 bpd week-on-week rebound in distillate fuel oil exports to 1.556 million bpd.

Adding to the optimistic outlook for crude exports has been the widening Brent-WTI differential since early July, making U.S. prices more attractive. 

While the correlation between the Brent-WTI spread and the rate of U.S. exports has softened since WTI was included in the Brent benchmark, a larger discount may still entice international buyers in the weeks ahead.