EIA: US motor gasoline stocks unexpectedly rose, flashing demand concerns
Total motor gasoline stockpiles increased by 3.3 million barrels in the week ending November 22, climbing to 212.2 million barrels. This surprise buildup defied expectations of higher demand, as market had predicted record levels of Thanksgiving travel.
US gasoline inventories rose unexpectedly last week, raising questions about demand just as the Thanksgiving travel rush begins, according to data from the Energy Information Administration (EIA).
Total motor gasoline stockpiles increased by 3.3 million barrels in the week ending November 22, climbing to 212.2 million barrels. This surprise buildup defied expectations of higher demand, as market had predicted record levels of Thanksgiving travel.
"It is surprising to see gasoline inventories building so much and implied demand not really budging week-on-week," one industry insider commented.
In contrast, US commercial crude oil inventories dropped by 1.8 million barrels to 428.4 million barrels, a sharper decline than anticipated. The drawdown was largely driven by a steep fall in net imports, which dropped by 1.88 million barrels per day (bpd) compared to the previous week.
Oil production in the US showed resilience, inching up to nearly 13.5 million bpd as facilities recovered from recent disruptions. Meanwhile, refinery utilization rates ticked up to 90.6%, a slight improvement from the previous week's 90.2%.