EIA: Weekly stock build reflects import swings and weather disruptions, not demand shift

US commercial crude stocks rose by 16 million barrels in the week ending 20 February, the US Energy Information Administration (EIA) reported on Wednesday, bringing total inventories to 435.8 million barrels, roughly 3% below the five-year average. The figures followed an 11.2 million-barrel build reported earlier by the American Petroleum Institute (API).

Analysts noted that weather-related production outages have distorted weekly inventory readings, reflecting operational timing rather than fundamental shifts in demand. 

Local crude production edged down by 33,000 barrels per day (bpd) to 13.7 million bpd, while net imports averaged 2.3 million bpd—up 413,000 bpd from the previous week and 16.5% higher than the same four-week period last year. Market observers cautioned that weekly stock swings often mirror short-term shifts in imports, exports, and refinery runs, with the four-week average of products supplied—a proxy for consumption—remaining steady.

Refined product inventories were mixed. Total motor gasoline stocks fell by 1 million barrels after a 3.2 million-barrel drop the previous week, as output eased to 9.2 million bpd.

Demand indicators remain robust. Over the past four weeks, total products supplied averaged 21.4 million bpd, up 5.4% year on year. Gasoline consumption held at 8.5 million bpd, while distillates supplied rose 4% to 4.4 million bpd, highlighting resilient domestic demand despite fluctuating inventories.

Written by: Farid Muzaffar