U.S. crude oil inventories fell last week, according to the Energy Information Administration (EIA), but the decline was smaller than analysts had forecasted.
The EIA reported that commercial crude oil stocks decreased by 607,000 barrels, below the expected drop of 800,000 barrels. Compared to the steep 9.285 million-barrel decline recorded the prior week, this week’s modest reduction suggests a slowing in the pace of crude withdrawals.
Crude oil inventory levels are closely watched as they can influence petroleum prices and inflation. Normally, rising stockpiles indicate weaker demand and put downward pressure on prices, while falling inventories signal stronger consumption, supporting higher prices.
“This week’s smaller-than-anticipated decline points to weaker demand than expected,” analysts noted, “but the ongoing reduction, even at a slower pace, confirms that crude consumption remains steady.”
Investors and market watchers will be monitoring upcoming EIA reports to see whether this trend continues, as the data provide key insights into U.S. energy demand and the broader economy.
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