Crude Builds, Fuel Stocks Tighten
U.S. crude inventories rose sharply last week, while gasoline and distillate stocks fell as export demand strengthened. The Energy Information Administration said crude stockpiles climbed to their highest level since June 2023, adding pressure to oil prices. The bigger-than-expected crude build came as refinery activity eased and imports shifted lower. At the same time, total petroleum product exports hit a record, helping pull fuel inventories down.
- Crude stocks rose by 5.5 million barrels to 461.6 million barrels.
- Cushing inventories increased by 520,000 barrels.
- Refinery runs fell by 219,000 barrels per day.
- Utilization slipped to 92.1%.
Fuel Demand And Exports Stand Out
Fuel balances moved the other way. Distillate inventories, which include diesel and heating oil, fell more than expected, while gasoline stocks also declined. The drop came as exports rose and total product supplied, a demand proxy, improved.
- Distillate stocks fell by 2.1 million barrels to 117.8 million barrels.
- Gasoline stocks dropped by 586,000 barrels to 240.9 million barrels.
- Distillate exports rose to 1.41 million bpd.
- Total product exports reached a record high.
Oil Prices Stay Under Pressure
Oil futures stayed in negative territory after the inventory data. Brent and WTI both traded lower, reflecting the market’s focus on ample crude supply.
- Brent traded at $101.27 a barrel.
- WTI traded at $98.96 a barrel.
- Net U.S. crude imports fell by 209,000 bpd.
- Exports rose to 3.5 million bpd.
WSA Take
The latest data points to a market that is still well supplied with crude, even as fuel exports and demand improve. That mix can keep pressure on oil prices when inventories rise faster than expected. The key next watch is whether stronger product exports continue to offset crude builds and refinery slowdowns. For now, the report leans bearish for crude and more balanced for refined products.
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