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US commercial crude oil inventories fell by 2.3 million barrels in the week ending 1 May to 457.2 million barrels, leaving stocks about 1% above the five-year average. The draw came in below expectations, with a Reuters poll pointing to a 3.3 million-barrel decline, suggesting a slightly softer-than-anticipated tightening in crude balances.

Despite the headline build in expectations gap, market reaction remains relatively contained, with the draw largely viewed as export-driven rather than a reflection of stronger domestic demand, according to analysts.

Crude imports averaged 5.5 million barrels per day (bpd), down 273,000 bpd from the previous week, while exports dropped more sharply by 1.69 million bpd. The steeper decline in exports pushed net imports higher by 1.42 million bpd, effectively offsetting part of the import weakness and shaping the overall inventory outcome.

Domestic crude production held broadly steady at 13.6 million bpd, edging down just 13,000 bpd, underscoring stable upstream activity with no signs of operational disruption or supply shock.

In refined products, total motor gasoline inventories fell by 2.5 million barrels on the week, leaving stocks about 4% below the five-year average for this time of year. The continued draw reinforces a relatively tight gasoline balance, even as broader supply-side signals remain mixed.

Written by: Farid Muzaffar