U.S. crude inventories fall as gasoline, distillate inventories surge

(MENAFN) In the week leading up to August 2, U.S. crude oil inventories saw a significant decrease, while gasoline and distillate stocks experienced an uptick. According to the U.S. Energy Information Administration (EIA), crude inventories fell by 3.7 million barrels, bringing the total down to 429.3 million barrels. This drop substantially exceeded analysts' expectations, which had forecasted a modest decrease of 700,000 barrels according to a poll. Despite this overall decline, crude oil stocks at the Cushing, Oklahoma, delivery hub actually rose by 579,000 barrels, indicating some regional variability in inventory levels.

During the same period, refinery operations ramped up, with crude runs increasing by 252,000 barrels per day. This rise in refinery activity contributed to a slight increase in refinery utilization rates, which edged up by 0.4 percent to reach 90.5 percent of total capacity. The increased refinery activity, however, did not align with the overall trend in crude inventories, suggesting that other factors, such as increased import levels, were at play. Indeed, the EIA reported that net U.S. crude imports rose by 552,000 barrels per day over the week, contributing to the complex dynamics affecting inventory levels.

In contrast to the decline in crude inventories, gasoline and distillate stocks both saw increases. Gasoline inventories rose by 1.3 million barrels, bringing the total to 225.1 million barrels, defying analysts' expectations of a 1 million barrel decrease. Similarly, distillate stockpiles, which include diesel and heating oil, increased by 900,000 barrels to reach 127.8 million barrels, surpassing the anticipated rise of 200,000 barrels. These increases in refined product inventories suggest a buildup in supply, possibly in response to fluctuating demand or strategic stockpiling by refineries, adding another layer of complexity to the current oil market scenario. 

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