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EIA: US commercial crude inventory surprisingly built up amid reduced refinery run ratesThis increase comes as a result of a modest uptick in domestic oil production, which rose to 13.3 million barrels per day from the previous week’s 13.2 million, and decreased demand from refineries. |
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The latest data from the Energy Information Administration (EIA) reveals a surprising rise in US commercial crude inventories following a recent two-year low. For the week ending September 29, 2024, crude stockpiles increased by 3.9 million barrels, reaching 416.9 million barrels. This increase comes as a result of a modest uptick in domestic oil production, which rose to 13.3 million barrels per day from the previous week’s 13.2 million, and decreased demand from refineries.
Refinery activity experienced a notable slowdown, with facilities operating at just 87.1% of their capacity, down sharply from 90.9% the previous week. The sluggish refinery throughput further exacerbates concerns over a potential supply-demand imbalance, as net crude imports also saw a marginal increase, rising by 190,000 barrels per day to 2.75 million barrels per day.
Despite an increase of 1.1 million barrels in motor gasoline inventories, levels remain roughly 1% below the five-year seasonal average, underscoring a fragile equilibrium in the fuel market.
Written by: Muhammad Hafiz
