Commercial crude oil stocks in the United States fell by 8.6 million barrels last week, according to the Energy Information Administration (EIA).
The decline came as crude production and imports both dropped during the period. At the same time, refineries increased their capacity use, drawing more crude into processing and reducing inventories.
The weekly figures are closely watched by traders and analysts because they offer an early read on supply and demand in the world's largest oil market. A sizable draw in commercial stocks is often interpreted as a sign of tightening supply, although the reasons behind any single week's movement can vary.
The EIA's weekly report provides the official tally of U.S. petroleum inventories and typically shapes near-term sentiment in energy markets. Further readings in coming weeks will show whether the drop reflects a lasting trend or a temporary shift in production, trade and refining activity.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing