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US commercial crude inventories rose for a second consecutive week, increasing by 6.4 million barrels to 427.6 million barrels in the week ended 7 November, according to the Energy Information Administration (EIA). Despite the sizeable build, stocks remained about 4% below the five-year average, underscoring a market where seasonal demand is softening but still broadly resilient.

The build came even as crude imports fell by 703,000 barrels per day (bpd) to 5.2 million bpd. A steeper decline in exports — down by 1.5 million bpd to 2.8 million bpd — left more barrels in the domestic system and was the primary driver of the stock increase. US crude production also climbed, rising by 211,000 bpd to 13.9 million bpd.

Refinery activity strengthened, with crude inputs up by 717,000 bpd from the prior week and utilisation rates improving to 89.4%. The pickup indicates refiners are maintaining steady throughput, even though utilisation remains below the above-90% levels recorded a year earlier.

Gasoline inventories posted a second straight draw, falling by 900,000 barrels to 205.1 million barrels, signalling stable transport fuel demand beyond the peak driving season. Still, motor gasoline product supplied averaged 8.8 million bpd over the past four weeks, down 2.6% year on year. Part of the decline may reflect mobility disruptions linked to the recent US government shutdown, which temporarily curtailed parts of the commercial aviation sector.

In its Short-Term Energy Outlook released on Wednesday, the EIA said it expects US oil production to set a fresh record this year, though global supply is still projected to outpace fuel demand.

Written: Farid Muzaffar