Print

US commercial crude inventories rose by 0.6 million barrels to 427.5 million barrels in the week ending 28 November, a smaller build than the previous week’s 2.8 million-barrel increase. Stocks remain about 3% below the five-year average, narrowing slightly from last week’s 4% deficit. The modest rise came as refinery activity strengthened, while crude imports eased.

Crude imports fell by 456,000 bpd to 6.0 million bpd, reversing last week’s increase, while refinery crude inputs climbed by 433,000 bpd to 16.9 million bpd. Utilisation rose to 94.1%, marking another week of firm late-season operations. Gasoline production increased to 9.8 million bpd and distillate output reached 5.1 million bpd, supporting higher product inventories.

Gasoline stocks increased by 4.5 million barrels, a larger build than last week’s 2.5 million-barrel rise, leaving inventories about 2% below the five-year norm. Distillate inventories rose by 2.1 million barrels, expanding on the prior week’s 1.1 million-barrel gain, though stocks remain 7% under seasonal averages. Propane/propylene inventories fell by 0.7 million barrels, compared with a 1.1 million-barrel draw previously, but remain 15% above the five-year benchmark.

Demand indicators stayed soft. Four-week average gasoline supplied dipped to 8.7 million bpd, down 1.2% year on year, while distillate demand held at 3.7 million bpd, about 2% lower than a year earlier. Jet fuel consumption also declined on the same basis. Overall, the combination of strong refinery runs, lower crude imports, and subdued demand kept crude and product inventories trending higher, reinforcing a mildly oversupplied market and maintaining pressure on near-term price sentiment.

Written by: Farid Muzaffar