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US Crude Stocks Slide for 7th Straight Week as Refinery Runs Climb, TPH Says

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US commercial crude inventories fell for the seventh consecutive week, plummeting by 7.2 million barrels, TPH Energy strategists said in a note on Thursday, citing the Department of Energy.

The draw, which far exceeded the 2.2 million-barrel decline projected by TPH Energy analysts, brings the seven-week total reduction to 39.2 million barrels.

Commercial crude inventories are now trending 1% below year-ago levels and 5% below the five-year average.

The crude inventories at the Cushing, Oklahoma, storage hub fell by 800,000 barrels to 21.6 million barrels, marking a new five-year low for the key delivery point.

The decline in crude stocks was driven by higher refinery activity, with crude runs rising by 80,000 barrels per day, led by strength in the PADD 5 region. Domestic crude production rose by 92,000 b/d to 13.799 million b/d.

Though crude exports fell by 1.03 million b/d, the decline was offset by a 509,000 b/d drop in crude imports. TPH said that despite the weekly dip, the four-week average for crude exports remains robust, trending 38% higher over the year.

On the product front, gasoline and distillate inventory movements outperformed seasonal expectations.

Gasoline stocks saw a modest build of 200,000 barrels, supported by stronger net exports, while distillate inventories saw a surprise draw of 200,000 barrels amid firmer single-week demand. Jet fuel inventories, however, rose by 800,000 barrels due to softer demand.

Overall, the four-week average for light product demand held steady at 1% above year-ago levels. TPH said that a notable 7% gain over the year in distillate demand provided the primary offset to weakening consumption in the gasoline and jet fuel segments, which slipped 1% and 2%, respectively.

Ethanol inventories saw a minor decline of 200,000 barrels to 24.5 million barrels, though they remain at seasonal highs as production continues to track near five-year peaks.

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