EIA: US crude stocks rose sharply, prompting market and inflation watch

Crude oil inventories in the United States increased by 3.4 million barrels in the week ending 9 January, the US Energy Information Administration (EIA) reported on Wednesday. Total commercial stockpiles, excluding the Strategic Petroleum Reserve, stood at 422.4 million barrels, around 3% below the five-year seasonal average.

Imports climbed to 7.1 million barrels per day (bpd), up 752,000 bpd from the previous week, while exports remained lower at 4.3 million bpd, contributing to the inventory build. Over the past four weeks, average crude imports were roughly 6.1 million bpd, down 5.7% from the same period last year.

Domestic crude production edged down slightly by 58,000 bpd to 13.8 million bpd, while refinery utilisation ticked up to 95.3%. In the petroleum products segment, total motor gasoline inventories also rose by 9 million barrels, supported by an increase in average daily gasoline production to 9.0 million barrels.

The EIA release follows the American Petroleum Institute’s (API) report a day earlier, which indicated a larger inventory build of 5.27 million barrels. This contrasts sharply with the previous week’s drawdown of 3.8 million barrels, highlighting the volatility in US crude flows. 

Analysts note that such inventory swings could influence upcoming inflation readings and shape expectations ahead of the Federal Reserve’s policy decision later this month.

Written by: Farid Muzaffar