US crude oil inventories, excluding the Strategic Petroleum Reserve, fell by 1.934 million barrels in the week ending December 26, the largest weekly drop since mid-November and well above market expectations of a 0.9 million-barrel decline.
Despite the draw, commercial crude stocks finished the year at 423 million barrels, comfortably above the historical average and reflecting a globally oversupplied market, even amid the blockade of Venezuelan tankers and sanctions on major Russian producers and blenders.
Meanwhile, gasoline stocks rose sharply by 5.845 million barrels, far exceeding forecasts of 1.9 million, while distillate inventories climbed 4.977 million barrels, also above the expected 2.2 million-barrel increase, highlighting ongoing oversupply pressures in refined products.