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US Crude Oil Inventory Hits Yearly Low, Nymex Front-Month Contract Climbs

Published 27/09/2023, 17:58
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In an unexpected turn of events, {{8849|U.S. crcrude oil inventories fell by 2.2 million barrels, hitting a yearly low on Wednesday. This significant drop has led to a rise in the Nymex front-month crude contract for November delivery, which climbed to $92.97 a barrel.

Meanwhile, storage at Cushing, Okla., a major crude oil hub, also saw a decrease. The stockpile at this location dropped by 943,000 barrels. Despite these changes in storage levels, U.S. crude production remains stable at 12.9 million barrels a day.

In contrast to the falling crude oil inventories, gasoline stockpiles have seen an increase, rising to 220.5 million barrels. However, even with this increase, they remain 4% below the five-year average. Similarly, distillate stocks also increased but are currently 13% below the five-year average.

The refining capacity utilization rate has experienced a drop as well, falling to 89.5%. This rate measures the amount of refinery input that a refinery location is using from its total operable capacity.

The unexpected fall in U.S. crude oil inventories and the subsequent rise in the Nymex front-month contract indicate shifts within the energy market landscape. As these changes continue to unfold, stakeholders will be keeping a close eye on future inventory reports and production rates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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