EIA: US commercial crude inventory surprisingly built up amid reduced refinery run rates
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.
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