Key insights
- US crude oil inventories fell sharply, exceeding expectations, alongside significant declines in gasoline and distillate stocks. Rising refinery utilization rates suggest increased demand. The news triggered a rally in oil futures. This could translate to higher energy prices, potentially impacting consumer spending and inflation, presenting a moderate bullish signal for energy stocks but a slightly bearish signal for the broader market due to inflationary pressures.
Investing.com -- U.S. crude oil inventories dropped by 6.2 million barrels to 459.5 million barrels in the week ending April 24, the Energy Information Administration reported on Wednesday.
Gasoline stocks fell by 6.1 million barrels to 222.3 million barrels, significantly exceeding analyst expectations of a 2.1 million-barrel decline in a Reuters poll. Distillate inventories also decreased during the week.
At the Cushing, Oklahoma delivery hub, crude stocks dropped by 796,000 barrels.
Oil futures rose following the inventory data, with Brent crude trading at $116.85 per barrel, up $5.59, and West Texas Intermediate at $104.67 per barrel, up $4.74, as of 10:38 a.m. ET.
Refinery crude runs increased by 84,000 barrels per day, while utilization rates rose by 0.5 percentage point during the week.
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