Quiver Quantitative - The U.S. experienced a notable escalation in its oil inventories last week, exceeding prior predictions. Data released by the Energy Information Administration (EIA) confirmed that commercial crude-oil reserves surged by 1.4 million barrels, settling at a total of 421.1 million barrels. To provide context, this figure remains roughly 5% beneath the five-year average. While market analysts consulted by The Wall Street Journal had anticipated a modest rise of 10,000 barrels, the actual numbers showcased a more substantial increase. This growth in stockpiles consequently exerted pressure on the Nymex front-month crude contract for December, which observed a 1% decline, priced at $83 a barrel.
Key insights from the data highlight that U.S. crude-oil production maintained its steady rate, matching the monthly high of 13.2 million barrels a day, established earlier this month. This consistency is particularly notable, considering the previous apex of 13.1 million barrels per day was recorded at the commencement of the pandemic in March 2020. Additionally, while gasoline reserves increased by 200,000 barrels to 223.5 million barrels, surpassing analysts' projections, distillate stocks (primarily diesel) registered a decline of 1.7 million barrels, culminating at 112.1 million barrels. Contrary to expectations of a rise, the refining capacity utilization rate witnessed a marginal drop to 85.6%.
Delving deeper into the week's petroleum data for the week ending October 20, U.S. crude oil refinery inputs averaged 15.2 million barrels daily, marking a reduction of 206 thousand barrels from the preceding week's average. Moreover, refineries operated at an 85.6% capacity. As gasoline production saw an uptick, averaging at 9.8 million barrels daily, distillate fuel production also experienced growth, averaging 4.7 million barrels daily. From an import perspective, U.S. crude oil imports averaged 6.0 million barrels daily, a 71-thousand-barrel increment from the previous week.
Wrapping up the data, total products supplied over the recent four-week span averaged 20.2 million barrels daily, indicating a 0.8% decline compared to the same timeframe the prior year. Notably, while motor gasoline product supplied dropped by 2.7%, jet fuel supply surged by 5%, reflecting a shift in consumption patterns compared to the same four-week duration from the preceding year.
This article was originally published on Quiver Quantitative