Oil Prices Down As Crude Stockpiles & US Production Rise

The latest Energy Information Administration report indicated that US crude stockpiles rose 1.3 million barrels in the week ending February 1st. This was less than half of the 3.7 million barrel build for which the market was looking.

Sitting at just over 447 million barrels, US crude stockpiles are now around 6% higher than the five-year average for this time of year. The report comes just a day after the American Petroleum Institute issued its weekly report noting a 2.5 million barrel build in crude inventories.

Gasoline Inventories UP

The data in the report also showed that gasoline inventories rose by 500k barrels over the week, now sitting around 5% above the average for this time of year.

However, distillate inventories (which include diesel and heating oil) were down by over 2 million barrels over the week, now sitting just 4% above the average for this time of year.

Gasoline Production Lower

Propane-propylene inventories also saw a decrease of 2.6 million barrels over the week bringing them down to 4% above the average for this time of year. Gasoline production was also seen lower, averaging 9.9 million barrels per day while distillate fuel production jumped, averaging 5.1 million barrels per day.

US crude imports were seen higher again, following a large drop over the prior week, rising by 63k barrels per day to stand at 7.1 million barrels per day over the week. On average, over the last four weeks, US crude oil imports have averaged 7.5 million barrels per day.

Crude Inventories Rise Frustrating For OPEC

The price action in crude this week will be bitterly disappointing for OPEC which is attempting to turn the tide through a six-month period of production cuts.

Along with a group of allied nations led by Russia, OPEC has begun reducing supply which will take around 1.2 million barrels per day off the market, with around 800k barrels per day of production cuts coming from the oil cartel itself.

US Crude Production Remains At Highs

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