US Crude Inventories Rise 2.4M Barrels Amid Refinery Maintenance

U.S. crude oil inventories unexpectedly increased by about 2.4 million barrels in the week ended August 29, reversing analysts' expectations of a decline, as refineries began their autumn maintenance season. Gasoline inventories fell sharply by approximately 3.8 million barrels, the largest drop since April, despite a slight decrease in gasoline demand ahead of the Labor Day weekend. Distillate fuel stocks, including diesel and heating oil, rose by about 1.7 million barrels, contrary to forecasts predicting a decline. Crude oil stocks at the Cushing, Oklahoma delivery hub also increased significantly, and net U.S. crude imports rose, contributing to the overall inventory build. Refinery utilization rates dipped slightly to 94.3%, and crude oil production remained steady at around 13.4 million barrels per day. The data led to a modest decline in oil prices, reflecting market concerns over the supply-demand balance as the summer driving season ends.