U.S. crude oil supplies fell 9.9 million barrels (2.6%) for the week ending July 5, according to an Energy Information Administration (EIA) report (link opens a PDF) released today.
The report also shows that gasoline prices at the pump fell for the fourth week in a row, down $0.004 to a national average of $3.492 per gallon.
After falling 2.6% the previous week as well, oil inventories seem to be locking in to a downward dip. While imports increased by a slight 118,000 barrels per day (bbpd), an additional 28,000 bbpd increase in refinery inputs after the previous week's 386,000 jump kept supplies shrinking.
Gasoline inventories also dropped significantly, down 2.6 million barrels (1.2%) after a 1.7-million-barrel decrease the week before. Demand for motor gasoline is up a seasonally adjusted 2.5% over the last four weeks, and supplies remain "well above the upper limit of the average range," according to the EIA.
Pump prices fell for the fourth week in a row, down $0.004 to a national average of $3.492 per gallon. Compared to the same time last year, consumers are paying an average $0.081 more per gallon.
Unlike oil and gas, distillates supplies increased 3.0 million barrels in the most recently reported week. Distillates demand is up a seasonally adjusted 12.3% over the last four weeks, and supplies "are near the lower limit of the average range for this time of year," according to the EIA.