The latest weekly inventory report from the Energy Information Administration reveals a modest decline in U.S. crude oil inventories, falling short of market expectations. Crude stocks decreased by 640,000 barrels last week, while analysts had projected a median drawdown of 1.5 million barrels.

The report also detailed notable movements in refined product inventories. Gasoline stockpiles rose by 794,000 barrels, defying forecasts that had called for a reduction of 1.1 million barrels. Meanwhile, distillate inventories, which include diesel and heating oil, increased by 1.585 million barrels, exceeding the anticipated gain of 650,000 barrels.

At the key delivery hub in Cushing, Oklahoma, crude inventories fell by 342,000 barrels during the week. This localized drawdown partially offset the smaller-than-expected decline in total U.S. stockpiles.

Refinery operations showed signs of softening as utilization rates dropped by 1 percentage point, which was steeper than the expected 0.5 percentage point decline. Correspondingly, refinery crude processing volumes decreased by 256,000 barrels per day, indicating reduced throughput at processing facilities.

On the supply side, crude oil imports rose by 234,000 barrels per day, adding to the overall supply picture. Domestic crude production edged lower by 3,000 barrels per day, a marginal change that had little impact on the broader balance.

The mixed data points to a complex supply environment, where weaker refining demand and stronger imports helped offset production dips. Market participants are now weighing these figures against ongoing geopolitical and macroeconomic factors that continue to influence oil price direction.