Crude oil inventories in the United States increased by 900,000 barrels during the week ending September 25, according to data released by the U.S. Energy Information Administration on Wednesday, September 30, 2026. The increase brings commercial stockpiles to 427.3 million barrels, positioning crude inventories 2% above the five-year average for this time of year.
This represents a more modest build compared to the American Petroleum Institute's earlier report, which indicated crude inventories had gained 1.019 million barrels in the same period. A more concerning picture emerged in refined products markets, particularly in distillate stocks. Middle distillates, which include diesel and heating oil, declined by 2.3 million barrels for the reporting week, with production decreasing to an average of 5.0 million barrels daily.
The critical issue is that distillate inventories now stand 14% below the five-year average, signaling tightness in the diesel market. Motor gasoline inventories also decreased, losing 1.7 million barrels, matching the decline from the previous week, though average daily gasoline production remained steady at 9.5 million barrels. U.S. oil demand metrics showed strength during the reporting period.
Total products supplied, which serves as a proxy for overall petroleum demand, averaged 20.8 million barrels per day over the last four weeks, up 2.1% compared to the same period last year. Gasoline demand averaged 8.7 million barrels per day over the four-week period, while the distillate four-week average supplied reached 3.8 million barrels daily, representing a year-over-year increase of 5.2%. Crude futures markets responded positively to the EIA data release.
Brent crude was trading at $103.34 per barrel, up $0.75 or 0.73% on the day and approximately $2 per barrel higher compared to the same time the previous week. WTI crude also advanced, gaining $1.38 per barrel or 1.54% to reach $90.76 per barrel, though this represented a decline of roughly $1.25 per barrel from the previous week's comparable time. The divergence between adequate crude supplies and tight distillate inventories reflects ongoing supply chain complexities in the U.S. refining sector, particularly amid elevated global diesel demand and recent export restrictions implemented by major producers.
The below-average distillate stocks coincide with reports of strong distillate demand growth, raising questions about refining capacity constraints and the ability to meet winter heating demand.
Source: oilprice.com