Data from the US Energy Information Administration (EIA) showed crude oil inventories fell sharply last week as Hurricane Delta disrupted offshore production in the Gulf of Mexico. At the same time, distillate stocks, which include diesel and heating oil, dropped by the most since 2003 as refiners halted operations amid the storm. According to the data, crude stockpiles stood at 489.1 million barrels in the week ended October 9, falling by 3.8 million barrels from a week earlier, compared to analysts’ expectations for a 2.8 million-barrel drop.
US crude oil output decreased by 500,000 bpd week-on-week to 10.5 million bpd, as the hurricane forced producers to shut most of domestic offshore production. Refining output also slowed last week, with throughput falling by 276,000 bpd and refinery utilization rates declining by two percentage points to 75.1%.
US distillate inventories dropped by 7.2 million barrels in the week, a larger drawdown than analysts’ estimates of a 2.1 million-barrel fall. Distillate inventories in the Gulf Coast region plunged by a record 5.5 million barrels. The Gulf Coast was the most affected US region by Hurricane Delta.
