EIA: US crude stocks surge in massive build as export collapse and import influx overwhelm refiners

US commercial crude oil inventories surged by 17.4 million barrels in the week ending August 7 to 424.4 million barrels, recording their largest weekly accumulation since early 2023 as a severe export slump and an influx of foreign crude flooded domestic tanks. The massive build abruptly narrowed commercial inventory deficits to roughly 2% below the five-year seasonal average.

The inventory accumulation was primarily driven by severe trade flow dislocations. Crude exports plummeted by 627,000 barrels per day (bpd) to 3.06 million bpd, while crude imports jumped by 1.14 million bpd to average 7.34 million bpd. Refinery crude inputs held virtually flat at 17.18 million bpd, maintaining operable capacity utilisation at an elevated 96.2%. Concurrently, Strategic Petroleum Reserve (SPR) stocks contracted by another 6.1 million barrels to 298.7 million barrels as official drawdowns accelerated.

In sharp contrast to the crude build, downstream product balances continued to tighten across the barrel. Total motor gasoline inventories fell by 1.0 million barrels to 208.7 million barrels—standing 6% below the five-year average—as finished gasoline production edged down to 9.68 million bpd. Distillate fuel oil stocks slipped by 0.1 million barrels to 107.1 million barrels, holding structural deficits at 12% below historical baselines despite steady refinery production of 5.31 million bpd. Meanwhile, propane/propylene inventories expanded by 1.9 million barrels to 105.0 million barrels, remaining 31% above seasonal averages.

The dramatic shift from late July's multi-year lows highlights escalating friction across international shipping routes, where paralyzed export channels are stranding uncommitted crude in domestic storage while leaving downstream product buffers dangerously thin.

Written by: Aiman Haikal