EIA: US crude inventories retreat on lower imports while refinery utilisation slumps
US crude oil inventories declined last week, driven by a sharp drop in imports and robust exports, even as refinery processing rates fell significantly.
US crude oil inventories declined last week, driven by a sharp drop in imports and robust exports, even as refinery processing rates fell significantly. Data from the US Energy Information Administration (EIA) released on Wednesday showed a tightening in crude balances despite lower run rates.
Commercial crude stocks (excluding the Strategic Petroleum Reserve) decreased by 2.3 million barrels to 423.8 million barrels in the week ending 23 January. At this level, inventories remain about 3% below the five-year seasonal average for this time of year.
Refinery activity pulled back notably, with crude oil inputs averaging 16.2 million barrels per day (bpd)—a decrease of 395,000 bpd from the previous week’s average. Refinery utilisation rate dropped by 2.4% to 90.9% of operable capacity.
The crude draw was underpinned by trade dynamics. US crude oil imports averaged 5.6 million bpd, plunging by 804,000 bpd from the previous week. Meanwhile, crude exports surged, rising to 4.59 million bpd compared to 3.69 million bpd in the prior period. Domestic crude production remained largely stable, edging down slightly by 36,000 bpd to 13.7 million bpd.
Despite lower refinery throughput, refined product inventories posted modest gains. Total motor gasoline inventories increased by 0.2 million barrels to 257.2 million barrels, placing them about 5% above the five-year average. Distillate fuel inventories rose by 0.3 million barrels to 132.9 million barrels, standing 1% above seasonal norms. Gasoline production increased to 9.6 million bpd, while distillate production declined by 268,000 bpd to 4.8 million bpd.
Demand indicators were mixed. Total products supplied, a proxy for demand, averaged 20.3 million bpd over the last four-week period, down nominally by 0.1% from the same period last year. While jet fuel demand showed strength, rising 5.5% year-on-year, motor gasoline and distillate consumption softened, falling by 0.4% and 4.8%, respectively, compared to year-ago levels.
Written by: Aiman Haikal