US Crude Inventories Surge by 17.4 Million Barrels, Largest Weekly Build Since January 2023

U.S. commercial crude oil inventories posted a surprise and substantial increase last week, surging by 17.4 million barrels in the largest weekly build since January 2023. The data, released Wednesday by the U.S. Energy Information Administration (EIA), defied market expectations and sent oil futures lower.

Details of the Report

The build for the week ending August 7th brought total U.S. crude stockpiles, excluding the Strategic Petroleum Reserve, to 424.4 million barrels, the highest level since June 5th. The increase was a stark contrast to analyst forecasts, which had anticipated a decrease of 1.4 million barrels.

A key driver behind the surge was a reported decline in crude oil exports during the period. Other key figures from the weekly report include:

• Cushing, Oklahoma Inventories: Stocks at the key delivery hub for U.S. crude futures rose by 1.6 million barrels.
• Refinery Utilization: The refinery operating rate edged down by 0.3 percentage points to 96.2% of total capacity.
• Refinery Throughput: Crude processing at refineries increased slightly, up by 26,000 barrels per day.

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Market Impact

Oil prices extended their losses immediately following the release of the bearish inventory data. Both West Texas Intermediate (WTI) and Brent crude futures, the U.S. and international oil benchmarks, fell as the unexpected build signaled potential oversupply or weakening demand.

Data for refined products was also a focus for traders. Gasoline inventories fell by 1.0 million barrels to 208.7 million barrels. However, this was a smaller draw than the 1.2 million-barrel decline analysts had expected, causing U.S. gasoline futures to fall by 0.63% after the report.