U. S. Oil Stocks Take a Dip, Prices Climb

The U. S. is holding less oil than usual right now. The Energy Information Administration (EIA) said that oil stockpiles dropped by 2. 3 million barrels last week. That's a lot less than what's typical for this time of year. This drop in supply comes as oil prices are going up. Brent crude, a key global benchmark, was trading at $68. 11 per barrel, up from earlier in the week. WTI, another important benchmark, was also up, trading at $63 per barrel. These price increases are partly due to worries about oil supply being disrupted by winter storms and geopolitical tensions. But it's not all bad news for oil consumers. Gasoline inventories actually went up by 200, 000 barrels. And the average daily gasoline production increased to 9. 6 million barrels. However, demand for gasoline is down compared to last year.Middle distillates, which include things like diesel, also saw an increase in inventories. But production of these products decreased by 268, 000 barrels daily. Overall, the U. S. is using about 20. 3 million barrels of oil per day. That's slightly less than last year. Gasoline demand is averaging 8. 3 million barrels per day, while distillate demand is down by 4. 8 percent year over year. So, while oil prices are going up, it's important to remember that demand is not as high as it used to be. This could have big implications for the oil industry and consumers in the long run.