US crude oil inventories +0.922M versus -0.264 million estimate

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US weekly petroleum inventory changes for the week ending September 25:Crude oil: +0.922 million barrels vs −0.264 million expected. Prior +2.969 million.Distillates: −2.251 million barrels vs −0.190 million expected. Prior −0.428 million.Gasoline: −1.684 million barrels vs −0.485 million expected. Prior −1.686 million.Cushing crude stocks: +0.555 million barrels. Prior +2.266 million.The US Energy Information Administration’s weekly inventory figures were mixed, with an unexpected crude build offset by larger-than-expected declines in gasoline and distillate inventories.Crude stocks increased by 922,000 barrels, compared with expectations for a modest draw. Inventories at Cushing also increased, although both builds were smaller than the previous week.The product side was tighter. Distillate inventories fell by 2.251 million barrels, substantially more than expected, while gasoline stocks declined by 1.684 million barrels. Those draws provide an offset to the softer headline crude result.Quick analysis:The unexpected crude build would normally weigh on oil prices, but the larger product draws could cushion that pressure. Falling inventories of diesel, heating oil and gasoline may support product prices, although inventory changes alone do not establish stronger demand. For the Fed, the relevance is whether energy prices add to inflation pressure; one weekly report is unlikely to change the policy outlook.What this report measures:The EIA Weekly Petroleum Status Reporttracks US petroleum inventories, refinery activity and supply flows. Traders compare weekly builds and draws with expectations to assess the supply balance. Cushing is the Oklahoma delivery hub for West Texas Intermediate crude futures.TheThe data compares to the private estimates yesterday showed This article was written by Greg Michalowski at investinglive.com.