Crude Oil Inventories Rise as Imports Decline: What It Means for Prices
Inventory Build and Supply Dynamics. U.S. crude oil
WTI3! inventories increased by 4.6 million barrels last week, bringing total commercial stockpiles to 432.5 million barrels. Despite this buildup, inventories remain 3% below the five-year seasonal average, signaling that supply constraints are still present in the market.
A key driver behind this inventory rise is the sharp decline in crude oil imports, which fell by 488,000 barrels per day (bpd) over the past week. This marks a significant shift, as the U.S. has increasingly relied on domestic production and exports to balance supply. Meanwhile, crude oil exports surged by 472,000 bpd, reinforcing the trend of strong outbound shipments despite fluctuating global demand.
Impact on Prices and Market Sentiment
Despite rising inventories, West Texas Intermediate (WTI) crude prices tradingview.com/symbols/USOIL/?exchange=TVC fell to $72.05 per barrel, reflecting broader market concerns over economic slowdowns and demand uncertainty. This represents an $8.60 year-over-year decline, indicating that supply pressures alone are not enough to drive prices higher.
The key question for traders is whether this inventory buildup will continue in the coming weeks. If imports remain low and exports persist at high levels, domestic supply could tighten, providing support for prices. However, if refinery demand weakens, further inventory accumulation may put additional pressure on WTI and Brent tradingview.com/symbols/UKOIL/?exchange=TVC prices.
Gasoline and Diesel Market: Supply Squeeze and Demand Trends
Refinery Production and Inventory Shifts. U.S. refinery throughput declined slightly, with crude oil processing falling to 15.4 million barrels per day (bpd), down 15,000 bpd for the week. Refinery utilization stood at 84.9%, reflecting seasonal maintenance and potential market shifts.
Gasoline production
GASOLINE decreased to 9.2 million bpd, while distillate fuel output increased to 4.7 million bpd, suggesting stronger demand for diesel and heating fuels. However, inventories tell a different story:
• Gasoline inventories fell by 0.2 million barrels, leaving stocks 1% below the five-year seasonal average.
• Distillate inventories dropped sharply by 2.1 million barrels, now standing 12% below the five-year average.
• Propane inventories declined by 3.6 million barrels, though they remain stable compared to last year.
Demand Trends and Pricing Impacts
Over the past four weeks, total petroleum demand increased by 3.7% year-over-year, reaching 20.4 million bpd. Notably, gasoline consumption edged up 0.4% to 8.4 million bpd, while distillate demand surged by 14.2% to 4.3 million bpd, reflecting strong industrial and freight sector activity.
Retail gasoline prices rose to $3.148 per gallon yet remain $0.121 lower than a year ago. Meanwhile, WTI crude settled at $72.05 per barrel, down $8.60 year-over-year, as broader market concerns weighed on prices.
Inventory Build and Supply Dynamics. U.S. crude oil
WTI3! inventories increased by 4.6 million barrels last week, bringing total commercial stockpiles to 432.5 million barrels. Despite this buildup, inventories remain 3% below the five-year seasonal average, signaling that supply constraints are still present in the market.A key driver behind this inventory rise is the sharp decline in crude oil imports, which fell by 488,000 barrels per day (bpd) over the past week. This marks a significant shift, as the U.S. has increasingly relied on domestic production and exports to balance supply. Meanwhile, crude oil exports surged by 472,000 bpd, reinforcing the trend of strong outbound shipments despite fluctuating global demand.
Impact on Prices and Market Sentiment
Despite rising inventories, West Texas Intermediate (WTI) crude prices tradingview.com/symbols/USOIL/?exchange=TVC fell to $72.05 per barrel, reflecting broader market concerns over economic slowdowns and demand uncertainty. This represents an $8.60 year-over-year decline, indicating that supply pressures alone are not enough to drive prices higher.
The key question for traders is whether this inventory buildup will continue in the coming weeks. If imports remain low and exports persist at high levels, domestic supply could tighten, providing support for prices. However, if refinery demand weakens, further inventory accumulation may put additional pressure on WTI and Brent tradingview.com/symbols/UKOIL/?exchange=TVC prices.
Gasoline and Diesel Market: Supply Squeeze and Demand Trends
Refinery Production and Inventory Shifts. U.S. refinery throughput declined slightly, with crude oil processing falling to 15.4 million barrels per day (bpd), down 15,000 bpd for the week. Refinery utilization stood at 84.9%, reflecting seasonal maintenance and potential market shifts.
Gasoline production
GASOLINE decreased to 9.2 million bpd, while distillate fuel output increased to 4.7 million bpd, suggesting stronger demand for diesel and heating fuels. However, inventories tell a different story:• Gasoline inventories fell by 0.2 million barrels, leaving stocks 1% below the five-year seasonal average.
• Distillate inventories dropped sharply by 2.1 million barrels, now standing 12% below the five-year average.
• Propane inventories declined by 3.6 million barrels, though they remain stable compared to last year.
Demand Trends and Pricing Impacts
Over the past four weeks, total petroleum demand increased by 3.7% year-over-year, reaching 20.4 million bpd. Notably, gasoline consumption edged up 0.4% to 8.4 million bpd, while distillate demand surged by 14.2% to 4.3 million bpd, reflecting strong industrial and freight sector activity.
Retail gasoline prices rose to $3.148 per gallon yet remain $0.121 lower than a year ago. Meanwhile, WTI crude settled at $72.05 per barrel, down $8.60 year-over-year, as broader market concerns weighed on prices.
Head of Analytics Center at the European broker Mind-Money.eu
👉 mind-money.eu
Website
👉 igorisaev.com/
👉 mind-money.eu
Website
👉 igorisaev.com/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Head of Analytics Center at the European broker Mind-Money.eu
👉 mind-money.eu
Website
👉 igorisaev.com/
👉 mind-money.eu
Website
👉 igorisaev.com/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.