U.S. Crude Inventories Plummet as Refineries Hit Peak Output

A sharp 8.3 million barrel drop in commercial crude oil stocks last week caught analysts off guard, as the U.S. Energy Information Administration reported inventories falling to 418.2 million barrels. The decline, more than double the anticipated 3.5 million barrel forecast, reflects an aggressive surge in domestic refinery activity.

June 17, 2026, 06:08 PM 596 0

U.S. Crude Inventories Plummet as Refineries Hit Peak Output

Refineries operated at 96.7% of capacity for the week ending June 12, processing 17.2 million barrels per day. This operational intensity, combined with a significant reduction in net imports, pushed stocks 6% below the five-year seasonal average. Meanwhile, the Strategic Petroleum Reserve saw an additional drawdown of 8.9 million barrels, leaving its holdings at 340.3 million barrels.

Domestic production remained anchored at 13.8 million barrels per day. While crude and gasoline supplies tightened—the latter falling to 214.2 million barrels amid a rise in consumer demand—distillate stocks bucked the trend. They grew by nearly 1 million barrels, defying expectations of a supply withdrawal despite remaining 13% below historical averages.

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