EIA: US crude stocks dropped sharply as gasoline and distillate inventories climb
US crude oil inventories pulled back sharply last week, even as gasoline and distillate stocks built steadily, highlighting a market moving in opposite directions.
US crude oil inventories pulled back sharply last week, even as gasoline and distillate stocks built steadily, highlighting a market moving in opposite directions. Data from the US Energy Information Administration (EIA) points to a nuanced start to the year for US crude outlook.
Commercial crude stocks, excluding the Strategic Petroleum Reserve, fell 3.8 million barrels in the week ending 2 January, leaving totals at 419.1 million barrels—around 3% below the five-year seasonal average.
Domestic production edged down 16,000 bpd to 13.8 million, while imports surged to 6.3 million barrels per day (bpd), though the four-week average remained nearly 10% below last year’s pace. Exports rose 823,000 bpd to 4.3 million but could not fully offset the increased inflows.
Refineries continued operating near full capacity, processing 16.9 million bpd, with utilisation steady at 94.7%. Total motor gasoline inventories remained robust at 242 million barrels, growing by 7.7 million bpd, while distillate production rose to 5.3 million bpd, supporting gains in middle distillate stocks.
Propane and propylene inventories declined but stayed well above seasonal norms, and total petroleum inventories rose 8.1 million barrels, driven by gains in refined products. Early estimates from the American Petroleum Institute had pointed to similar trends, though the EIA data revealed a deeper crude draw than expected, underscoring the delicate balance shaping US markets at the start of the year.
Written by: Farid Muzaffar