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Fuel Stock Draws Offset Crude Inventory Build

by Krystal

The American Petroleum Institute (API) reported that U.S. crude oil inventories increased by 4.247 million barrels for the week ending March 7. Analysts had expected a smaller build of 2.1 million barrels.

Since the start of the year, crude inventories have risen by nearly 17 million barrels, according to Oilprice calculations based on API data.

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Earlier this week, the Department of Energy (DoE) reported a 0.3 million-barrel increase in the Strategic Petroleum Reserve (SPR), bringing total reserves to 395.6 million barrels. Despite this rise, SPR levels remain significantly below pre-withdrawal levels following releases under the Biden Administration.

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As of 4:26 p.m. ET, Brent crude was trading at $69.59 per barrel, up $0.31 (+0.45%) on the day but down $0.50 from the same time last week. The U.S. benchmark, West Texas Intermediate (WTI), rose $0.25 (+0.38%) to $66.28 per barrel, nearly $1 lower than last week’s price.

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Gasoline inventories declined sharply, falling by 4.560 million barrels in the week ending March 7. This followed a 1.249 million-barrel drop the previous week. Despite the decline, gasoline stocks remain 1% above the five-year average for this time of year, according to the latest Energy Information Administration (EIA) data.

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Distillate inventories saw a modest increase of 421,000 barrels last week, following a larger build of 1.136 million barrels the week before. As of February 28, distillate supplies were already 6% below the five-year average, according to EIA data.

Meanwhile, crude inventories at Cushing, Oklahoma—the key delivery hub for U.S. oil futures—fell by 1.196 million barrels after rising by 1.630 million barrels the previous week.

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