US Crude Inventories Fall 0.6 Million Barrels as Implied Oil Demand Surges Nearly 2 Million BPD

The US Energy Information Administration reported a draw of 0.6 million barrels in crude oil inventories for the week ended September 11, a decline that came in smaller than market expectations. While crude stocks fell, fuel inventories moved in the opposite direction, with gasoline and other product stocks rising during the period.

Implied US oil demand, measured by product supplied, jumped by 1.942 million barrels per day week over week to 21.225 million barrels per day. The gain was driven largely by a sharp increase in the "other oils" category, up 1,587 thousand barrels per day, and propane/propylene, up 381 thousand barrels per day. Gasoline demand rose by 247 thousand barrels per day and jet fuel added 14 thousand barrels per day, while distillate demand fell 177 thousand barrels per day and residual fuel oil declined 112 thousand barrels per day.

Separately, Seeking Alpha raised questions about ExxonMobil's Guyana output, flagging the potential for lower production from the Stabroek block in the near term, a development that could affect one of the company's most consequential growth assets.