EIA: Crude stocks rise as fuel demand surges and gasoline prices spike amid Middle East tensions
US crude inventories climbed last week even as gasoline and diesel supplies tightened, reflecting strong fuel demand amid concerns over rising pump prices as the conflict in the Middle East disrupts global trade.
US crude inventories climbed last week even as gasoline and diesel supplies tightened, reflecting strong fuel demand amid concerns over rising pump prices as the conflict in the Middle East disrupts global trade. Crude stockpiles increased by 3.8 million barrels to 443.1 million barrels in the week ended 6 March, well above analysts’ expectations of a 1.1 million-barrel gain, according to the Energy Information Administration (EIA).
Domestic crude production fell slightly by 18,000 barrels per day (bpd) to 13.7 million barrels, remaining stable and near recent multi-year highs, indicating supply resilience even as refineries and consumers react to geopolitical risks. Higher imports and falling exports supported the crude build. Net U.S. imports rose as by 661,000 bpd, as exports significantly declined from the previous week by 563,000 bpd to 3.4 million barrels.
Total motor gasoline inventories fell 3.7 million barrels to 249.5 million, surpassing expectations for a 2.6 million-barrel draw. Gasoline prices jumped 11% last week to $3.32 a gallon, the highest since September 2024. Strong consumer demand and precautionary buying in response to the geopolitical risk drove gasoline consumption higher, with gasoline demand up 949,000 bpd to 9.2 million bpd, while distillate demand rose 367,000 bpd to 4.0 million bpd.
Refineries responded to the tighter market by increasing runs, with crude processing up 328,000 bpd and utilization rates rising 1.6% to 90.8%. This suggests operators are capitalising on higher margins by drawing from storage and meeting elevated demand.
Distillate inventories fell by 1.3 million barrels to 119.4 million, double the expected draw of 0.7 million barrels, reinforcing the broader trend of heightened fuel consumption. Total product supplied, a proxy for overall demand, responded to the conflict as it surged to 21.2 million bpd from 19.9 million bpd the previous week.
Written by: Farid Muzaffar