US crude oil inventories rose to a three-year high of 464.7 million barrels.
Data from the EIA shows that US crude oil inventories rose sharply by 3.1 million barrels last week, far exceeding forecasts. Meanwhile, gasoline and refined product inventories declined.
According to a report released on April 8th by the U.S. Energy Information Agency (EIA), U.S. crude oil inventories have risen to their highest level in nearly three years. This development comes as refined fuel inventories have declined due to sustained high demand from international markets.
US crude oil inventories rose more than expected.
Specifically, in the week ending April 3rd, U.S. crude oil inventories increased by 3.1 million barrels, reaching a total of 464.7 million barrels. This figure is significantly higher than the 701,000-barrel increase forecast by analysts in a previous Reuters survey.
At the Cushing (Oklahoma) delivery hub, oil inventories also increased by 24,000 barrels, reaching their highest level since July 2024. The US Gulf Coast also recorded its highest inventory level since March 2023. Meanwhile, oil in the Strategic Petroleum Reserve (SPR) decreased by 1.7 million barrels, to 413.3 million barrels.
Analyzing oil price fluctuations and market demand.
Despite rising inventories, crude oil futures narrowed their losses mid-session. Brent crude was trading at $94.90 a barrel, while West Texas Intermediate (WTI) crude traded at $95.45 a barrel.
| Item | Inventory status | Change level |
|---|---|---|
| Commercial crude oil | Increase | 3.1 million barrels |
| Gasoline | Reduce | 1.6 million barrels |
| Distilled products | Reduce | 3.1 million barrels |
| Strategic Reserve (SPR) | Reduce | 1.7 million barrels |
For refined products, inventories of distillate products (including diesel and heating oil) fell by 3.1 million barrels to 114.7 million barrels, exceeding the initial forecast of a 1.5 million barrel decrease. Gasoline inventories also fell by 1.6 million barrels, in line with market expectations.
Impact of import and export activities
Giovanni Staunovo, an analyst at UBS, assessed the report as neutral. According to him, the increase in commercial inventories is partly due to the US beginning to release oil from its strategic reserves, but strong international demand for US crude oil and refined products has helped balance the market.
Data from the EIA shows that US crude oil imports decreased by 758,000 barrels per day, while exports increased by 628,000 barrels per day, reaching 4.15 million barrels per day. At refineries, capacity utilization decreased slightly to 92%, corresponding to a reduction in processing of 129,000 barrels per day.
