According to figures released Wednesday by the American Energy Information Administration (EIA), U.S. crude oil inventories unexpectedly contracted last week amid a decline in imports.
Commercial reserves decreased by 500,000 barrels for the week ending October 25, while analysts had anticipated an increase of 1.8 million barrels based on a consensus from Bloomberg.
The reduction in stocks is primarily attributed to a 7% decrease in imports, with 3.2 million fewer barrels entering the U.S. compared to the previous week.
Simultaneously, exports experienced a slight uptick of 4%.
U.S. production remained steady at 13.5 million barrels per day, a record high.
Another contributing factor to the decline in commercial stocks is the 1.2-million-barrel increase in the Strategic Petroleum Reserve (SPR) over the week, which has effectively reduced the volumes available for U.S. refineries.
The SPR consists of reserves held by the U.S. government to mitigate potential shocks in the oil market.
During the specified week, refinery utilization rates dipped slightly to 89.1%, down from 89.5% in the prior period.
The EIA report further bolstered oil prices, which were already trending upward, with West Texas Intermediate (WTI) crude for December delivery rising by 1.84% to $68.45.
