Domestic petroleum demand declined last week, dragged lower by a drop in distillate fuel consumption, while production recovered in the wake of Hurricane Ida, according to the latest U.S. Energy Information Administration (EIA) inventory report.

EIA’s Weekly Petroleum Status Report, released Wednesday, showed output climbed to 11.1 million b/d for the week ended Sept. 24. That was up from 10.6 million b/d for the prior week and well above the Sept. 10 week — 10.1 million b/d —  when flooding and power outages caused by Hurricane Ida left widespread production challenges in the Gulf of Mexico (GOM).

Pre-Ida, output had reached 11.5 million b/d. The storm hit the GOM on Aug. 29 and knocked out nearly all production in the region through early September.

On the demand side,...