EIA: Crude stock build as imports ticked higher, exports eased

US commercial crude inventories rose in the week ending 26 September, with resilient product demand offsetting an uptick in crude imports, according to data from the Energy Information Administration (EIA).

Crude stocks increased by 1.8 million barrels to 416.5 million, leaving inventories about 4% below the five-year average, unchanged from the prior week. The build came as net crude imports edged up by 71,000 barrels per day (bpd) to 2.08 million bpd, while domestic production held steady at 13.5 million bpd, near record highs.

Refinery activity remained strong but eased slightly, with crude inputs averaging 16.2 million bpd. Utilisation rates dipped to 91%.

Total motor gasoline inventories rose by 4.1 million barrels to 220.7 million, broadly in line with seasonal norms. Distillate fuel inventories added 0.6 million barrels but remained 6% below the five-year average. Propane/propylene stocks climbed by 3.5 million barrels, sitting 13% above typical levels. Overall, total commercial petroleum inventories increased by 6.4 million barrels.

The data release coincided with the first day of a US federal government shutdown, after lawmakers failed to reach a funding deal. The EIA said it would continue operating “for a period of time during the lapse in appropriations.” It marked the first shutdown since 2018.

Crude stock gains were partly attributed to weaker exports, a development some analysts saw as a signal of softening demand. Market participants were bracing for a potential sell-off, with the government shutdown expected to weigh on economic activity and oil consumption.

Written: Farid Muzaffar