Crude oil inventories in the United States rose by 4.753 million barrels during the week ending November 8, according to data released by the American Petroleum Institute (API). This increase was significantly higher than analysts’ expectations of an 800,000-barrel build.
In contrast, the previous week saw a draw of 777,000 barrels in crude stockpiles. So far this year, API data shows that crude inventories have increased by less than 1 million barrels since the start of 2023.
The Department of Energy (DoE) also reported on Tuesday that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by 1.4 million barrels as of November 15. The SPR now holds 389.2 million barrels, a level that is 42 million barrels above its multi-decade low last summer. However, this is still 246 million barrels less than when President Biden assumed office.
At 3:19 PM ET, oil prices showed modest gains. Brent crude was trading at $73.42 per barrel, up $0.12 (+0.16%) on the day and $1.50 higher than its price a week earlier. West Texas Intermediate (WTI), the U.S. benchmark, was trading at $69.60 per barrel, up $0.44 (+0.64%) for the day and $1.60 higher than last Tuesday. Earlier in the week, prices surged following U.S. approval for Ukraine to use U.S.-manufactured missiles in Russian territory and a supply disruption at the Johan Sverdrup oil field.
Gasoline and Distillate Inventories Decline
Gasoline inventories fell by 2.48 million barrels this week, a sharp drop compared to last week’s 312,000-barrel increase. Current gasoline stock levels are 4% below the five-year average for this time of year, according to the latest data from the Energy Information Administration (EIA).
Distillate inventories also declined, falling by 688,000 barrels this week. This follows a 1.136-million-barrel increase the previous week. Distillate stocks remain about 5% below the five-year average for this period.
Cushing Inventories Continue to Shrink
Cushing, Oklahoma, the key delivery point for U.S. crude futures, saw a further reduction in stockpiles. Inventories at Cushing dropped by 288,000 barrels this week, following a more substantial decline of 1.859 million barrels the previous week, according to API data.
These mixed inventory trends highlight ongoing shifts in supply and demand dynamics within the U.S. energy market, as oil prices remain sensitive to geopolitical developments and domestic supply changes.
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