On sluggish demand, US crude, gasoline inventories are incre...| MENAFN.COM

Tuesday, 07 February 2023 05:43 GMT

On sluggish demand, US crude, gasoline inventories are increasing


(MENAFN) The Energy Information Administration stated on Wednesday that while demand for fuel products declined, United States crude and gasoline stocks increased.

In contrast to expectations for a 1 million-barrel increase, crude stocks increased by a less-than-expected 533,000 barrels in the most recent week, to 448.5 million barrels.

Phil Flynn, a price futures group analyst remarked, “the increase was much smaller than anticipated and that’s raising concerns about tightness in supply.” According to the EIA, United States gasoline inventories increased by 1.8 million barrels last week to 232 million barrels. Moreover, according to EIA statistics, total product supplied, a proxy for fuel demand, decreased by 867,000 barrels per day.

Refinery utilization rates soared by 0.8 percentage points, bringing the rate back above 80 percent after dropping the previous week to its lowest levels since March 2021.

The EIA stated that refinery crude runs surged by 128,000 barrels per day in the previous week as refiners ramped back up after a winter storm forced several units to halt output.

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