US crude oil inventories, excluding the Strategic Petroleum Reserve, fell 600,000 bbl for the week ended Sept. 11 from the previous week, the US Energy Information Administration reported. At 423.4 million bbl, crude stocks sit 1% above the 5-year average for this time of year.

The draw was modest against a refining system still running hard. US refineries processed 17.3 million b/d, down 256,000 b/d from the prior week's average, with operable capacity utilization at 96.8%.

Product inventories moved in different directions. Total motor gasoline stocks rose 800,000 bbl week-on-week and stand 5% below the 5-year average. Distillate inventories increased 1.6 million bbl and remain about 13% below the 5-year seasonal benchmark — a deficit the market has tracked closely heading into the heating season. Propane-propylene stocks fell 1.4 million bbl, leaving them 22% above the 5-year average. Total commercial petroleum inventories rose 2.6 million bbl for the week.

Refinery production data points to firm gasoline yields and softer distillate output. Gasoline production averaged 9.6 million b/d for the week. Distillate production decreased to 5.2 million b/d.

On the trade side, US crude oil imports averaged 7.1 million b/d, up 234,000 b/d from the previous week. Over the last 4 weeks, crude imports averaged about 6.7 million b/d, 7.5% higher than the same 4-week period a year earlier. Total motor gasoline imports averaged 537,000 b/d, while distillate fuel imports averaged 114,000 b/d.

The numbers sketch a system where high refinery utilization is drawing crude at a strong clip, yet a 96.8% run rate leaves little headroom. Gasoline and distillate demand from the refining sector has so far outpaced import growth for middle distillates, keeping the distillate deficit at 13% below the seasonal norm.

Watch item: the distillate inventory gap. With stocks 13% below the 5-year average and output at 5.2 million b/d, the next several weekly EIA reports will show whether higher imports and crack-driven economics can close the deficit before winter demand builds.