U.S. Crude Inventories Climb as Production Surges

The build was driven by a combination of rising imports and a significant pullback in export activity. Domestic crude production ticked upward by 50,000 barrels per day, reaching just under 13.9 million barrels daily. Meanwhile, imports swelled by 351,000 barrels per day to 5.6 million, while exports contracted sharply by 746,000 barrels per day. Despite the crude surplus, the Strategic Petroleum Reserve continued to drain, falling by 6.2 million barrels to 319.5 million as part of ongoing government releases.

Refinery operations slowed slightly to 95.8% of capacity, with crude input dropping to 17 million barrels per day. The refined product market saw contrasting pressures, as gasoline inventories slid by 1.9 million barrels amid a decline in demand. Distillate stocks experienced a steeper drop of 5 million barrels, moving against analyst projections that had anticipated a slight increase. Overall, commercial crude stocks remain roughly 6% below the five-year average for this time of year.