U.S. crude stocks jumped 5M barrels last week, fuel demand mixed - EIA
Investing.com -- Stockpiles of U.S. crude rose last week for their largest build in a week since February while demand for fuels were mixed, data from the U.S. Energy Information Administration, or EIA, showed Wednesday amid bets for greater oil consumption ahead of the typical summer surge in road, air and seaborne travel.
The U.S. crude inventory balance rose by 5.040 million barrels during the week ended May 12, the EIA said, versus a previous build of 2.951M for the week to May 5. Industry analysts tracked by Investing.com had forecast an inventory slide of 0.920M barrels in the latest week.
EIA historical data showed the last time there was such a huge weekly build was during the week ended Feb. 18, when crude stockpiles rose by 7.648M barrels.
The crude build for the latest week, however, comes with a usual caveat: The release of 2.4M barrels from the Strategic Petroleum Reserve without which the inventory balance might have been smaller. Crude releases from the U.S. reserve have been a challenge to oil bulls as the Biden administration sought to continuously moderate market optimism to prevent both oil and pump prices of fuel from rising too much to add to already high inflation.
Also, demand for fuels last week was mixed, bucking to an extent greater consumption ahead of the typical summer surge in road, air, and seaborne travel.
The EIA reported a gasoline inventory draw of 1.381M for the week ended May 12, versus forecasts for a drop of 1.060M barrels. In the previous week to May 5, there was a deficit of 1.060M barrels. Automotive fuel gasoline is the No. 1 U.S. fuel product.
On distillate stockpiles, the EIA cited a build of 0.080M barrels last week versus expectations for a drop of 0.057M barrels. In the prior week, distillates saw a huge slide of 4.170M. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships, and fuel for jets.
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