Distillate fuel oil inventories fell by 2.2M barrels last week, pressuring prices as heating and agricultural demand rises.
US diesel inventories hit their lowest seasonal level on record, raising concerns over supply tightness as winter heating and agricultural demand approaches. Stockpiles of distillate fuel oil, which includes diesel, declined by 2.2M barrels last week, according to data released Wednesday.
The drawdown comes as markets brace for increased consumption during the colder months, typically a peak period for distillate use. Inventories are now well below historical averages for this time of year, adding upward pressure on prices that have already climbed due to global supply constraints.
Analysts warn the low stockpiles could exacerbate price volatility if refinery output fails to keep pace with demand.