Refinery utilization drops to 92.5% from 94% week over week
U.S. commercial crude oil inventories, excluding the Strategic Petroleum Reserve, rose by 900,000 barrels to 427.3 million barrels in the week ended Sept. 25, the U.S. Energy Information Administration said Wednesday. The build left crude stocks about 2% above the five-year average for the time of year and ran counter to expectations; analysts surveyed by The Wall Street Journal had forecast a 200,000-barrel decline.
Refineries ran at 92.5% of capacity during the week, down from 94% the previous week. The Journal’s analyst survey had projected a slowdown of roughly 0.6 of a percentage point. Slower utilization typically reflects reduced near-term demand for processed crude, which can contribute to inventory builds.
The EIA estimated U.S. crude oil production at 14 million barrels per day, up 16,000 barrels per day from the prior week. Crude imports fell by 179,000 barrels per day to 5.7 million barrels per day.
Gasoline inventories fell by 1.7 million barrels to 204.3 million barrels, leaving them about 7% below the five-year average. The Journal survey had expected gasoline stocks to rise by 300,000 barrels. Distillate fuel stocks, which include heating oil and diesel, fell by 2.3 million barrels to 105.2 million barrels — roughly 14% below the five-year average for the time of year, against a forecast decline of 200,000 barrels.