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US Crude Stockpiles Unexpectedly Rise by 3 Million Barrels, EIA Reports
Summary
U.S. crude oil inventories surprisingly increased by 3.0 million barrels last week, contrary to analyst forecasts for a decline, while stockpiles of gasoline and distillates fell, according to the Energy Information Administration.
U.S. commercial crude oil inventories rose by 3.0 million barrels last week, a surprising build that defied analyst expectations for a drawdown, according to data released Wednesday by the Energy Information Administration (EIA).
The report, covering the week ended September 18, provides a mixed signal for the oil market, showing a build in raw crude supply alongside draws in refined fuel products.
Weekly Inventory Changes
The increase brought total U.S. crude stockpiles to 426.4 million barrels. The build contrasted sharply with analyst forecasts, which had anticipated a modest decline of 641,000 barrels.
Key figures from the weekly EIA report include:
Ad- Cushing, Oklahoma Hub: Inventories at the key delivery point for U.S. crude futures increased by 2.2 million barrels.
- Gasoline Stocks: Fell by 1.7 million barrels, against expectations for a 0.1 million-barrel increase.
- Distillate Stocks: Stockpiles of distillates, including diesel and heating oil, declined by 0.4 million barrels, largely in line with forecasts for a 0.6 million-barrel drop.
Refinery Activity and Market Reaction
The build in crude inventories coincided with a decrease in refinery processing. The EIA reported that refinery crude runs fell by 519,000 barrels per day during the week. Consequently, refinery utilization rates dropped by 2.8 percentage points to 94% of total capacity.
Oil futures markets showed a muted reaction immediately following the report's release. Around 10:37 a.m. ET, U.S. West Texas Intermediate (WTI) futures were trading at $91.83 per barrel, up $1.31, while the global benchmark Brent crude was at $101.64 per barrel, an increase of $2.39.
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