EIA Reports Significant Build in U.S. Crude Stockpiles

Crude oil inventories in the United States increased by 3.9 million barrels during the week ending September 5, after falling 2.4 million barrels in the week prior, according to new data from the U.S. Energy Information Administration (EIA) released on Wednesday. The build brings commercial stockpiles to 424.6 million barrels according to government data, which is 3% below the five-year average for this time of year.

The EIA’s data release follows API’s figures that were released a day earlier, which suggested that crude oil inventories expanded by a more modest 1.25 million barrels. 

Crude prices were trading up on Wednesday morning immediately following the EIA data release. At 10:54 a.m. in New York, Brent was trading at $66.82 per barrel—up $.043 (+0.65%) on the day and a roughly $.30 per barrel dip from last week’s level. WTI was also trading up, by $0.36 per barrel (+0.57%) in mid-morning trade. 

For total motor gasoline, the EIA reported an increase of 1.5 million barrels, after the week prior’s 3.8-million-barrel dip. The most recent figures showed average daily gasoline production decreasing to 9.6 million barrels. For middle distillates, inventories increased by a massive 4.7 million barrels, with production decreasing to 5.2 million barrels daily. Distillate inventories had increased 1.7 million barrels in the week prior and are now 9% below the five-year average for this time of year.

Total products supplied over the last four weeks slipped to 20.9 million barrels per day, up 2% compared to the same period last year. Gasoline demand averaged 8.9 million barrels per day over the last four weeks, while the distillate four-week average supplied at 3.8 million barrels—up 2 percent year over year.

By Julianne Geiger for Oilprice.com