U.S. crude oil reserves fell by 640,000 barrels to 423.4 million barrels for the week ending September 11, 2023. This comes as market analysts had predicted a larger decrease of 1.6 million barrels. The decline in crude oil reserves occurs alongside a significant increase in gasoline and diesel inventories.
Decrease in Oil Reserves at Cushing Delivery Hub
Oil reserves at the Cushing delivery hub in Oklahoma also decreased by 342,000 barrels during this period. This decline in crude oil reserves has raised concerns about supply in the global market. Meanwhile, oil refining operations have faced a decrease of 256,000 barrels per day compared to last week, with refinery utilization rates dropping to 96.8 percent.
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Increase in Gasoline and Diesel Inventory
In contrast, gasoline inventory rose by 794,000 barrels to 207.7 million barrels. This increase in gasoline inventory was contrary to analysts' expectations, who anticipated a decrease of 1 million barrels. Additionally, diesel inventory, which includes diesel fuel and heating oil, increased by 1.6 million barrels to 107.9 million barrels, also exceeding analysts' forecasts for a 71,000 barrel increase.
Overall, these changes in U.S. oil inventories reflect significant fluctuations in the energy market. With net crude oil imports decreasing by 1.18 million barrels per day, it is evident that both international and domestic impacts on the U.S. oil and fuel market are still evolving.
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