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Crude Oil Inventories Rise as OPEC Gets Ready to Increase Production

by Krystal

Crude oil inventories in the United States increased by 6.037 million barrels for the week ending March 28, according to the American Petroleum Institute (API). This followed a 4.6 million barrel drop in the previous week.

So far this year, U.S. crude oil inventories have risen by nearly 23 million barrels, based on API data calculations from Oilprice. Meanwhile, the U.S. Department of Energy (DoE) reported that crude oil in the Strategic Petroleum Reserve (SPR) grew by 0.3 million barrels, reaching 396.4 million barrels by March 28. Despite this increase, SPR levels remain significantly lower than before the Biden Administration’s withdrawals.

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At 4:26 pm ET, Brent crude was trading at $74.47 per barrel, down $0.30 (-0.40%) for the day. This represents a $1.30 per barrel increase from the same time last week, as OPEC prepares to reverse production cuts of 135,000 barrels per day (bpd) starting in April, with expectations for further increases in May. The U.S. benchmark West Texas Intermediate (WTI) was also down $0.26 (-0.36%), at $71.22 per barrel, though it is still up by $2 from the previous week.

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Gasoline inventories dropped by 1.628 million barrels for the week ending March 28, following a 3.3 million barrel decrease the prior week. However, gasoline inventories are now 2% higher than the five-year average for this time of year, according to the latest data from the U.S. Energy Information Administration (EIA).

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Distillate inventories also saw a decline, dropping by 11,000 barrels in the latest week. This follows a 1.3 million barrel decrease the week before. As of March 21, distillate inventories were approximately 7% below the five-year average, according to the EIA.

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In Cushing, Oklahoma—the key delivery point for U.S. crude futures—inventory levels rose by 2.244 million barrels, API data revealed.

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