Crude oil inventories in the United States increased by 0.4 million barrels during the week ending December 19, after holding nearly flat the week prior, according to new data from the U.S. Energy Information Administration (EIA) released late due to the Christmas holiday. The modest build brings commercial crude stockpiles to 424.8 million barrels, which is still about 3% below the five-year average for this time of year.
The delayed EIA data release follows API’s estimates from earlier in the week, which had pointed to a slightly larger build in U.S. crude inventories.
The EIA report was released after oil prices had ended the previous session more than 2% higher on rising geopolitical risk. In early Asian trade, West Texas Intermediate dropped 0.53% to $57.77 as traders digested the new data.
For total motor gasoline, the EIA reported that inventories increased by 2.9 million barrels on the week, pushing stockpiles slightly above the five-year average for this time of year. The latest data showed average daily gasoline production rising to 9.8 million barrels per day. For middle distillates, inventories rose by 200,000 barrels, while production increased by 108,000 barrels per day to average 5.3 million barrels per day. Despite the small build, distillate inventories remain about 5% below the five-year seasonal average.
Refinery activity eased slightly week over week but remained elevated for this time of year. U.S. refineries processed an average of 16.8 million barrels per day of crude oil, down 212,000 barrels per day from the previous week, with utilization slipping to 94.6% of operable capacity.
Total products supplied, a proxy for U.S. oil demand, averaged 20.5 million barrels per day over the last four weeks, down 0.8% compared to the same period last year. Gasoline demand over that period averaged 8.7 million barrels per day, down 1.9% year over year, while distillate demand averaged 3.9 million barrels per day, down 0.4%. Jet fuel supplied over the four-week period fell by 3.1% compared to last year, underscoring continued softness in travel-related fuel consumption.
By Charles Kennedy for Oilprice.com
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