EIA Eyes Lower Distillate Stocks Amid Improved Demand
5/08 9:47 AM
EIA Eyes Lower Distillate Stocks Amid Improved Demand Karim Bastati DTN Analyst Commercial U.S. crude oil inventories declined for a second week in a row, according to Energy Information Administration data. The agency on Wednesday reported a 2 million bbl draw to commercial crude oil stocks in the week ending May 2, bringing inventories to 438.4 million bbls, down 4.6% year-on-year. This came despite a 672,000-bpd week-on-week jump in net imports. Nationwide distillate fuel oil inventories shrank by 1.1 million bbls and were at their lowest since November 2023 at 106.7 million bbls. The for the season typical decline in middle distillate stocks was more precipitous than in years past, leading to them trailing year-ago inventory levels by 8.3% and the five-year average by 13%. This phenomenon was also reflected in EIA's latest short-term energy outlook released Tuesday. The agency revised lower end-of-quarter stock estimates for distillate fuel oil by 5.4% from last month's forecast, leading to 2.6% lower end-of-year stocks. This implies 12% lower inventories than in 2024. At the same time, consumption estimates were revised slightly higher to now above year-ago levels. Domestic demand for diesel and heating oil has in fact improved from last year, according to EIA data. Distillate fuel oil supplied to the market -- a proxy for fuel demand -- averaged 3.71 million bpd over the past four weeks, up 3.1% year-on-year. (c) Copyright 2025 DTN, LLC. All rights reserved.
 
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