U.S. commercial crude oil inventories rose 0.9 million barrels for the week ending September 25, the EIA's latest weekly report shows. Gasoline and distillate stocks fell, while analysts flagged easing Gulf export disruptions alongside continued risk around the Strait of Hormuz.
U.S. commercial crude oil stocks, excluding the Strategic Petroleum Reserve, rose 0.9 million barrels in the week ending September 25, according to the Energy Information Administration's latest weekly petroleum status report. The increase left commercial stocks at 427.320 million barrels, up from 426.398 million barrels the prior week.
Crude builds while the SPR keeps draining
Crude stocks were 2.6% higher year on year, against 416.546 million barrels a year earlier. The Strategic Petroleum Reserve, however, kept shrinking: it stood at 283.8 million barrels on September 25, a 0.3% weekly decline and a 30.2% drop from a year earlier.
Total petroleum stocks, spanning crude, gasoline, jet fuel, distillate and other products, came in at 1.528 billion barrels, down 7.8 million barrels week on week. Gasoline inventories fell 1.7 million barrels, seven percent below the five-year average, while distillate stocks dropped 2.3 million barrels, 14% below that benchmark.
Refiners pull back, imports slip
U.S. refineries processed 16.3 million barrels per day for the week, down 554,000 barrels per day from the prior week, at 92.5% capacity utilization. Crude imports decreased 179,000 barrels per day to 5.7 million barrels per day, though the four-week average of 6.4 million barrels per day ran 4.8% above the year-ago level.
Over the past four weeks, total product supplied averaged 20.8 million barrels per day, up 2.1% year over year. Jet fuel product supplied rose 6.5% year over year on that same four-week basis.
Analysts point to Gulf supply and lingering risk
Naeem Aslam, CIO at Zaye Capital Markets, said oil prices were easing as Gulf crude exports recover and U.S. inventories unexpectedly increased by 922,000 barrels. He added that Saudi export flows through alternative routes have also improved, reducing some of the immediate scarcity premium.
According to Aslam: "this is not yet a normal supply environment," and he pointed to vulnerable Middle East flows and persistent tanker risk around the Strait of Hormuz.
Macquarie strategists had forecast a 2.2 million barrel draw for the week, calling the outcome a catch-up after a 3.0 million barrel build the prior week had offset tightness from the three weeks before.
Source: Rigzone
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