U.S. crude oil stockpiles rose unexpectedly last week as imports surged, while both gasoline and distillate inventories declined more than anticipated, according to recent data from the Energy Information Administration (EIA).
Crude inventories rose by 244,000 barrels to reach 443.1 million barrels in the week ending April 18, as reported by the EIA. This increase contrasts with analysts’ expectations in a Reuters poll, which had forecast a draw of 770,000 barrels.
Net U.S. crude imports surged by 1.14 million barrels per day, bringing the total to 2 million bpd. This marks the largest weekly increase since November 2024, highlighting a significant shift in market dynamics.
Market reaction to crude data
Brent crude futures and U.S. West Texas Intermediate crude futures saw some losses pared following the release of this data, despite the surprise inventory build. The benchmarks were last reported down around 2 percent for the day.
Refinery crude runs increased by 325,000 bpd, and utilization rates climbed by 1.8 percentage points to 88.1 percent of total capacity, according to the EIA. Despite these gains, fuel stocks fell more than anticipated.
U.S. gasoline stocks fell by 4.5 million barrels, bringing the total down to 229.5 million barrels for the week. This decline significantly exceeded analysts’ expectations, which had anticipated a drop of only 1.4 million barrels.
Read more: Oil prices climb to $67.99 on declining U.S. crude stocks, trade optimism
Distillate inventories drop to lowest level since November 2023
Distillate stockpiles, which encompass diesel and heating oil, fell by 2.4 million barrels to 106.9 million barrels, marking the lowest level since November 2023. Analysts had predicted only a 30,000-barrel decrease, emphasizing the unexpected nature of this decline.
“We saw another bullish products inventory decline during build season,” reported Reuters, citing Josh Young, chief investment officer at Bison Interests. “It doesn’t seem to reflect potential demand decline from Trump’s tariff/trade war, yet.”
The four-week average for product supplied of jet fuel rose to 1.86 million bpd, the highest level recorded since December 2019. This indicates a strengthening demand for jet fuel, despite the overall inventory trends.
