US crude oil reserves they registered a slight increase during the week ending August 21, while gasoline and distillate inventories showed broader declines, according to the latest data from the Energy Information Administration (EIA).
According to the agency, crude oil inventories rose by 95,000 barrels to 428.9 million barrels, this increase fell well short of the 597,000 barrels expected by analysts polled by Reuters.
The data provides a new benchmark for the balance between fuel supply, processing, and consumption in the United States. Furthermore, the change in inventories had an immediate impact on oil futures.
Crude oil inventories are growing less than expected
First, the 95,000-barrel increase shows limited crude oil accumulation during the week, the difference from market expectations was considerable, as analysts anticipated an increase more than six times greater.
Meanwhile, Cushing saw a more pronounced movement, with oil inventories at this important Oklahoma storage and delivery hub increasing by 1.2 million barrels during the period.
Cushing is a relevant benchmark for the US market due to its relationship with futures contracts West Texas Intermediate (WTI) therefore, changes in their storage levels are closely monitored by operators and analysts in the energy sector.
Crude oil reserves, gasoline and distillate register sharp declines
In contrast to crude oil, gasoline inventories fell by 2.5 million barrels to 206.8 million, this reduction far exceeded analysts’ forecasts, which had anticipated a drop of around 700,000 barrels.
At the same time, distillate fuel stocks decreased by 2.2 million barrels to 103.4 million, this category includes products such as diesel and heating oil. The contraction was also greater than expected, market estimates pointed to a reduction of around 1.6 million barrels.
Thus, the weekly report of the EIA this paints a picture of distinct behaviors within the US oil market, the country accumulated slightly more crude oil while reducing its stockpiles of two major groups of refined fuels.
US refineries maintain high utilization
On the other hand, the volume of oil processed by refineries decreased by about 2,000 barrels per day during the week. However, the capacity utilization rate increased by 0.2 percentage points, reaching 97.4%.
This level reflects high system activity American refining the combination of near-maximum capacity utilization and lower fuel inventories provides a relevant signal for assessing market behavior in the coming weeks.
Likewise, net US crude oil imports fell by 161,000 barrels per day, this indicator allows for a complete reading of the availability of oil in the domestic market along with production, processing, and stored stocks.
Brent and WTI react to the EIA report
In the oil market, futures reduced some of the losses they had previously recorded after it became known that crude oil accumulation was less than expected. Brent crude was trading at $87.69 per barrel at 10:37 a.m. ET, down 89 cents, while WTI was at $81.72 per barrel, down 54 cents.
Thus, the market received a report with mixed signals, the small increase in crude oil reserves contrasted with larger-than-expected declines in gasoline and distillates, while refineries maintained a utilization rate of 97.4%.
Source: EnergyNow
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