U.S. Oil Inventories Surge as Domestic Production Reaches Record High

U.S. oil inventories have experienced a significant increase, surpassing expectations, as domestic crude production reaches an all-time high. According to data released by the Energy Information Administration on Thursday, commercial crude-oil stockpiles have surged by 10.2 million barrels in the past week alone, reaching a total of 424.2 million barrels. Despite this rise, inventories remain 3% below the five-year average.

Crude Oil Production Hits Record Levels

The rise in inventories can be attributed to a surge in domestic crude-oil production, which has now reached its highest level to date. With figures indicating a daily production of 13.2 million barrels, this surpasses the previous record set on March 13, 2020, by 0.1 million barrels.

Other Inventory Movements

While crude oil and gasoline stockpiles have experienced opposing trends, distillate stocks have declined. Gasoline stockpiles fell by 1.3 million barrels, resulting in a total of 225.7 million barrels, contrary to expectations of an increase. On the other hand, distillate stocks, mainly consisting of diesel fuel, have dropped by 1.8 million barrels, leaving a total of 117 million barrels. Distillate inventories are now approximately 11% below the five-year average.

Refinery Utilization Rate Decreases

The refining capacity utilization rate has experienced a noticeable decrease of 1.6 percentage points compared to last week’s figures. The rate now stands at 85.7%, exceeding expectations of just a 0.3-percentage-point decrease.

Summary: U.S. Oil Inventories for the Week Ended Oct. 6

  • Crude: +10.2 million barrels
  • Gasoline: -1.3 million barrels
  • Distillates: -1.8 million barrels
  • Refinery Use: -1.6 percentage points

(Note: All figures are in millions of barrels, except for refinery use, which is in percentage points.)

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