Crude oil production hit a new all-time high of 13.631 MMb/d, spurred by the EIA's re-benchmarking of supplies (see description below) by 105 Mb/d. Net refinery demand dropped by 250 Mb/d, erasing much of the previous week's 615 Mb/d rise. Imports decreased as PADDs 3 and 5 received 650 Mb/d fewer barrels each. Exports also fell by over 1 MMb/d, with no cargos leaving LOOP or Beaumont, according to RBN’s Crude Voyager. Inventories were down 1.4 MMbbl, led by a draw of 2.7 MMbbl in PADD 2, with 1.3 MMbbl specifically from Cushing. Finally, WTI prices declined to a four-week low, driven by computer-generated selling amid poor technical and fundamental conditions, while the market focused on OPEC+ production decisions and new U.S. sanctions on Iranian crude added mixed momentum, highlighting concerns over potential oversupply and subdued global oil demand growth.
In the monthly Short-Term Energy Outlook (STEO), the EIA evaluates weekly domestic crude oil production estimates by comparing recent trends in the survey-based Petroleum Supply Monthly (PSM) with other current data. If significant discrepancies are identified, the EIA re-benchmarks the weekly estimates during STEO release weeks. This week's re-benchmarking adjusted domestic crude oil production up by 105 Mb/d.
