US commercial crude inventories rose 900,000 bbl for the week ended Sept. 25, excluding the Strategic Petroleum Reserve, the US Energy Information Administration reported. Stocks stood at 427.3 million bbl, putting crude 2% above the five-year average for late September.

The build came as refinery crude inputs fell. Refineries processed an average 16.3 million b/d during the week, down 554,000 b/d from the prior week's average, with utilization at 92.5% of capacity. The pullback in runs — consistent with early autumn turnaround activity across Gulf Coast and Midwest refining centers — left more crude in storage even as imports declined.

Crude imports fell 179,000 b/d to 5.7 million b/d. The four-week import average of 6.4 million b/d remains 4.8% above the year-ago level. Gasoline imports averaged 500,000 b/d and distillate imports 153,000 b/d for the week.

Refined product balances told a more mixed story than the headline crude number. Gasoline production held at a strong 9.5 million b/d, while distillate output declined to 5.0 million b/d. Distillate inventories drew 2.3 million bbl and now sit 14% below the five-year average — a deficit that will draw attention from heating-oil buyers as the Northern Hemisphere heating season approaches.

Propane-propylene stocks moved the other way, building 1.8 million bbl to stand 20% above the five-year average. Total commercial petroleum inventories, all products combined, fell 7 million bbl for the week.

Demand indicators firmed. Total product supplied averaged 20.8 million b/d over the past four weeks, up 2.1% year over year. Gasoline product supplied rose 0.3% year over year to a four-week average of 8.7 million b/d, while distillate product supplied climbed 5.2% to 3.8 million b/d. Jet fuel product supplied posted the strongest gain, up 6.5% year over year on a four-week average basis.

The configuration sets up a clear watch item for coming weeks: distillate demand running more than 5% ahead of last year against inventories 14% below the five-year average, just as refinery turnaround season reduces crude runs. The next several EIA weekly reports will show whether margins pull additional distillate imports into Atlantic basin markets or whether rising crude storage at 427.3 million bbl signals refiners throttling back faster than demand requires.