EIA: US oil stocks climbed, but below-average levels underscore strong consumption

US commercial crude oil inventories surged by 5.2 million barrels in the week ended 31 October to 421.2 million barrels, according to data from the Energy Information Administration (EIA). While the increase marked a sharp reversal from the previous week, it came in below market expectations and left stockpiles about 4% under the five-year average, reflecting still-solid domestic demand.

The build was driven by higher crude imports, which climbed by 873,000 barrels per day (bpd) to 5.9 million bpd, while exports rose marginally by 6,000 bpd to 4.4 million bpd. The limited rise in outbound shipments suggests that domestic consumption remains resilient. US crude production was largely unchanged, inching up by 7,000 bpd to 13.6 million bpd—hovering near record highs.

Refinery runs eased slightly as operators continued the seasonal shift to winter-grade fuels. Crude inputs rose by 37,000 bpd from the prior week, but utilisation rates slipped by 0.6% to 86%. Despite the softer run rates, the figures indicate ongoing refinery demand and steady end-user consumption.

The unexpected stock build has prompted caution among traders amid concerns that rising supply could outpace demand in the coming months. Those worries were reinforced by OPEC+’s recent decision to raise collective output by 137,000 bpd in December.

However, a larger-than-expected draw in total motor gasoline inventories provided a counterweight to bearish sentiment. Motor gasoline stocks fell by 4.7 million barrels to 206 million barrels, compared with analysts’ forecasts for a 1.1 million-barrel decline, signalling firm consumption in the transport sector.

Written: Farid Muzaffar