According to the Energy Information Administration (EIA), inventories of crude oil and diesel fuel in the United States saw a significant increase last week. Meanwhile, gasoline supplies remained stable. These findings were revealed in the latest data released by the EIA on Wednesday.
Oil Prices React Positively to the Report
Prior to the release of the report, benchmark U.S. oil prices were already on the rise, and this positive momentum continued after the report’s publication. Currently, the Nymex front-month crude contract for August delivery sits at $75.93 per barrel, marking a 1.5% increase.
Crude-Oil Stockpiles Experience a Substantial Surge
Commercial crude-oil stockpiles surged by a remarkable 5.9 million barrels last week, reaching a total of 458.1 million barrels. This figure now stands approximately 1% above the five-year average, as confirmed by the EIA. Surveys conducted by The Wall Street Journal had initially predicted a slight decrease of 100,000 barrels in crude stockpiles from the previous week.
Factors Behind the Increase
The accumulation of commercial inventories can be attributed, in part, to a 400,000-barrel transfer of crude oil from the Strategic Petroleum Reserve to the commercial sector. This transfer is part of a series of transactions conducted by the Department of Energy over the past few months.
Cushing Oil Storage Declines
The EIA’s weekly report also revealed a decline in oil stored at Cushing, Oklahoma, which serves as the delivery point for U.S. stocks. The storage at Cushing decreased by 1.6 million barrels compared to the previous week, leaving a remaining total of 41.2 million barrels.
Overall, these updated inventory statistics shed light on the current state of the U.S. oil market, indicating a notable increase in crude oil and diesel fuel supplies. This information will undoubtedly influence further discussions and analysis within the energy sector.
U.S. Crude-Oil Production Decreases, Gasoline Stockpiles Remain Steady
U.S. crude-oil production experienced a slight decline of 100,000 barrels per day last week, reaching 12.3 million barrels per day, according to the Energy Information Administration (EIA).
Gasoline Stockpiles
Gasoline stockpiles, on the other hand, remained virtually unchanged, dropping by a minimal 4,000 barrels to 219.5 million barrels. This was contrary to analysts’ expectations, who predicted a decrease of 1.1 million barrels.
Distillate Stocks Surge
Distillate stocks, primarily consisting of diesel fuel, saw a significant increase of 4.8 million barrels to reach 118.2 million barrels. Despite this surge, distillates inventories are currently approximately 14% below the five-year average, as stated by the EIA. Analysts had initially predicted a slight decline of 100,000 barrels in distillates inventories for the week.
Refining Capacity Utilization Rate
The refining capacity utilization rate exhibited a notable rise of 2.6 percentage points from the previous week, reaching 93.7%. This exceeded expectations of a mere 0.2 percentage-point increase from the previous week.
U.S. Oil Inventories for the Week Ended July 7
- Crude: +5.9 million barrels
- Gasoline: No change
- Distillates: +4.8 million barrels
- Refinery Use: +2.6 percentage points
Note: All numbers are in millions of barrels, except for the refinery use figure, which is measured in percentage points.