EIA Reports Increase in US Crude Stocks, Decline in Gasoline and Distillate Inventories

• Crude stocks rose 3.8 million barrels versus expectations of 1.1 million, with refinery utilization increasing 1.6 percentage points to 90.8%
• Gasoline inventories fell 3.7 million barrels to 249.5 million (forecast: 2.6 million drop), while distillate stocks declined 1.3 million barrels (forecast: 0.7 million drop)
• Net U.S. crude imports increased by 661,000 barrels per day, and refinery crude runs rose by 328,000 barrels per day during the week

Summary: U.S. Crude Inventories Rise While Refined Product Stocks Decline

Key Figures (Week Ended March 6):

The U.S. Energy Information Administration (EIA) reported crude oil inventories increased by 3.8 million barrels to 443.1 million barrels, significantly exceeding analyst expectations of a 1.1 million-barrel rise. This marks a substantial build in crude stocks.

Refined Product Inventories:

• Gasoline stocks fell 3.7 million barrels to 249.5 million barrels (analysts expected a 2.6 million-barrel draw)
• Distillate inventories, including diesel and heating oil, declined 1.3 million barrels to 119.4 million barrels (versus expectations of a 0.7 million-barrel drop)

Operational Data:

• Cushing, Oklahoma crude storage increased by 117,000 barrels
• Refinery crude runs rose 328,000 barrels per day
• Refinery utilization rates climbed 1.6 percentage points to 90.8%
• Net U.S. crude imports increased by 661,000 barrels per day

Market Implications:

The larger-than-expected crude inventory build suggests weaker demand or increased supply, potentially pressuring oil prices. However, the decline in gasoline and distillate stocks—both exceeding forecasts—indicates strong refined product demand as refineries operated at elevated capacity. The 90.8% utilization rate reflects robust refining activity heading into the spring driving season.

The divergence between rising crude stocks and falling product inventories suggests refining margins may remain favorable, supporting refiners while creating mixed signals for crude oil markets.