Crude Prices Climb Modestly as EIA Reports Tight Gasoline Supply

Oil prices posted modest gains on Wednesday, with West Texas Intermediate (WTI) crude trading at $82.79 per barrel, up $0.43 (0.52%). Brent crude rose to $87.73, a gain of $0.46 (0.53%). The price for Bakken crude at the Clearbrook, Minnesota, hub is typically priced at a differential to WTI, which was recorded at $-3.42.

The upward movement comes despite new government data showing a slight increase in U.S. crude stockpiles. According to the U.S. Energy Information Administration (EIA), commercial crude inventories rose by 100,000 barrels for the week ending August 21, bringing total stocks to 428.9 million barrels. The EIA reported this level is 1% above the five-year average for this time of year.

Support for prices appeared to stem from a significant draw in gasoline inventories, a key indicator of summer driving demand. The EIA reported gasoline stocks fell by 2.5 million barrels last week, following a build in the prior period. Meanwhile, distillate fuel inventories, which include diesel, increased by 2.2 million barrels but remain 14% below the five-year average, indicating tighter supplies for that fuel.

The EIA data, sourced from OilPrice.com, also showed total product supplied—a proxy for overall U.S. oil demand—averaged 20.5 million barrels per day over the last four weeks. This figure is down 3.0% compared to the same period last year. Gasoline demand averaged 8.9 million barrels per day, while distillate demand averaged 3.8 million barrels per day, down 2.2% year-over-year.

For Bakken operators, the stable price environment above $82 WTI, combined with a differential under $-3.50, provides supportive economics for continued production. The modest inventory build suggests the market is relatively balanced, while the gasoline draw hints at sustained, though slightly weaker than last year, consumption. Natural gas prices also saw a rise, trading at $2.91, up $0.09 on the day, which can impact operational costs and associated gas revenue for producers in the Williston Basin.

The price gains represent a recovery from earlier Wednesday trading cited in the EIA report, which noted WTI was down $1.22 and Brent down $1.58 in the morning. The afternoon rebound underscores the market's focus on tightening refined product inventories even amid ample crude supplies.