Houston, January 31 (Reuters) – The Energy Information Administration (EIA) reported on Wednesday that U.S. crude stocks experienced a significant uptick last week as refineries rebounded from the impact of freezing weather.
According to the EIA, crude inventories saw an increase of 1.2 million barrels, reaching a total of 420.7 million barrels for the week ending January 26. This notable rise contrasts sharply with the anticipated 217,000-barrel draw predicted by analysts in a Reuters poll.
Meanwhile, crude stocks at the Cushing, Oklahoma delivery hub, USOICC=ECI, displayed a contrasting trend, decreasing by 2 million barrels during the same week, as stated by the EIA.
The release of EIA data had a marginal impact on oil prices. At 10:38 a.m. ET, U.S. crude was down by 1.9%, or $1.46, settling at $76.36 a barrel. Simultaneously, Brent exhibited a decline of 1.2%, or 97 cents, closing at $81.90 per barrel.
In addition to the surge in crude inventories, U.S. gasoline stocks USOILG=ECI recorded a rise of 1.2 million barrels, reaching a total of 253 million barrels for the week. This contrasts with analysts’ expectations from a Reuters poll, predicting a 1.5 million-barrel build.
Conversely, distillate stockpiles USOILD=ECI, encompassing diesel and heating oil, witnessed a decline of 2.5 million barrels during the week, totaling 133.3 million barrels. This unexpected decrease was attributed to increased heating demand driven by the cold weather, deviating from the projected 0.4 million-barrel drop according to EIA data.
Refinery crude runs USOICR=ECI experienced a decrease by 428,000 barrels per day, as indicated by the EIA. Concurrently, refinery utilization rates USOIRU=ECI dropped by 2.6 percentage points for the week.
In the realm of trade dynamics, net U.S. crude imports USOICI=ECI witnessed an increase last week, rising by 565,000 barrels per day, according to EIA reports.