Overview

According to the U.S. Energy Information Administration, crude inventories dropped unexpectedly last week. This news comes as refining volumes surpassed 2019 peaks, indicating that the demand for crude oil is increasing.

Inventories Fall Despite Analyst Expectations

America’s crude oil inventories fell by about 451,000 barrels, which is surprising given that analysts were expecting a one million barrel increase. This is a positive sign for the oil industry, as it suggests that the demand for crude oil is picking up again.

Refining Volumes at Highest Level Since August 2019

The refinery’s throughput increased by 482,000 bpd, while refinery consumption increased by 2.7% during the week. These figures represent the highest level since August 2019, indicating that the demand for refined products is increasing as well.