Losses for refined product futures were continuing to widen in late morning trading Wednesday after the government reported gasoline and distillate stocks rose in the week ended Friday.

Oil contracts were also lower, despite Energy Information Administration data showing a solid decline in domestic inventories last week.

Distillate futures were leading the way lower. The NYMEX August ULSD contract was off by 4.92cts to $2.356/gal at about 11:10 a.m. ET. The more actively traded September ULSD contract was 4.26cts lower at $2.3359/gal, leaving it close to the morning's low.

Gasoline futures were also at or near morning lows. The NYMEX August RBOB contract was off by 3.54cts to $2.1342/gal and the September contract was down by 3.2cts to $2.0913/gal.

Crude contracts were lower, though the declines were less than those for refined product futures. The NYMEX August West Texas Intermediate contract was off by 90cts to $65.62/bbl and the September WTI contract was 80cts lower at $64.57/bbl.

The September Brent crude contract was down by 83cts to $67.88/bbl and October Brent was 66cts in the red at $67.12/bbl.

EIA reported U.S. gasoline inventories rose last week by 3.4 million bbl, leaving them slightly above the five-year average. Distillate holdings rose by 4.2 million bbl, but were about 21% below the five-year average.

The agency also estimated oil stocks fell last week by 3.9 million bbl, putting them about 8% below the five-year average.

Further, EIA estimated implied gasoline demand last week dropped by 670,000 b/d to 8.489 million b/d. That was down by about 300,000 b/d from the comparable week of last year and nearly 400,000 b/d under the same week of 2023.

Implied distillate demand fell last week by 245,000 b/d to 3.423 million b/d, leaving it below the comparable weeks of last year and 2023, according to agency estimates. The builds in gasoline and distillate inventories came despite a drop in domestic refinery utilization. EIA estimated refineries ran last week at 93.9% of capacity, down from 94.7% in the previous week.

If the midday declines hold through the close of trading, petroleum futures will end the session with a third straight daily loss. Markets have been buffeted by trade concerns and the expectations of more oil coming on to markets as OPEC and its allies plan to increase production again in August.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Steve Cronin, scronin@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

July 16, 2025 12:11 ET (16:11 GMT)

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