U.S. Crude Oil Stockpiles Plunge Harder Than Expected—What This Means

The EIA just dropped Wednesday’s inventory report, and it’s a bigger drawdown than anyone anticipated.

The Numbers:

• Crude inventories fell 3.4M barrels last week (vs. economists’ forecast of 1.9M)
• That’s a sharp reversal from the previous week’s +6.4M surge
• Current level: 424.2M barrels—now sitting 5% below the 5-year seasonal average

What else moved:

• Gasoline stockpiles jumped +2.3M barrels but still 3% lean vs. historical norms
• Distillate fuels (heating oil + diesel) crept up 0.2M barrels, yet remain 7% below average

The crude drawdown is more aggressive than expected, signaling stronger demand or tighter supply conditions heading into winter. With inventories already running lean relative to the 5-year baseline, any further supply disruptions could add upward pressure on prices. Energy traders are watching this closely.