US Crude Oil Inventories Rose by 4.4 Million Barrels Last Week, EIA Reports

U.S. commercial crude oil inventories increased by 4.4 million barrels in the week ending August 14, according to a weekly report from the Energy Information Administration (EIA) released Wednesday. The build brought total domestic crude stockpiles to 428.8 million barrels.

Detailed Inventory Breakdown

The EIA data presented a mixed picture for refined products, which are key indicators of consumer demand. A modest build in gasoline was offset by a larger draw in distillates.

• Gasoline inventories: Rose by 0.7 million barrels to 209.4 million barrels.
• Distillate stockpiles: (which include diesel and heating oil) Decreased by 1.5 million barrels to 105.6 million barrels.

Refinery Activity and Cushing Hub

Refinery activity, a measure of fuel production, showed an increase. Refinery crude runs rose by 216,000 barrels per day, and overall utilization rates climbed by 1 percentage point during the period, the EIA said.

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Crucially for oil traders, crude stocks at the Cushing, Oklahoma delivery hub—the pricing point for the U.S. benchmark West Texas Intermediate (WTI) crude contract—fell by 1.3 million barrels.

Market Context

A headline build in crude inventories is typically viewed as a bearish signal for oil prices, as it can suggest that supply is outpacing consumption. However, the draw in distillate stocks and the inventory drop at the key Cushing hub provide a more nuanced view of the market's supply-demand balance.

Energy traders and investors closely monitor the EIA's weekly report to assess demand trends in the world's largest oil-consuming economy. The combination of rising refinery runs and a draw at Cushing may temper the bearish sentiment from the overall crude build.