US Crude Reserves Drop by 8.6 Million Barrels

The EIA data follows a more aggressive estimate from the American Petroleum Institute, which suggested a decline of 11.12 million barrels for the same period. Market reaction to the news remained mixed by mid-morning in New York. Brent futures slipped 0.32% to $105.72 per barrel, while WTI bucked the trend, rising 2.02% to $97.01.

Energy demand indicators present a complex picture. While crude stocks fell, motor gasoline inventories grew by 3.5 million barrels, supported by an average daily production of 9.2 million barrels. Conversely, middle distillate stocks tightened, falling by 2.5 million barrels to reach levels 12% below the five-year average. Despite these fluctuations, total product supply—the primary proxy for domestic oil demand—averaged 21.1 million barrels per day over the past four weeks, reflecting a 2% increase over the same period last year.