U.S. crude oil inventories recorded another increase in the final full week of December, reinforcing a short-term pattern of stock builds across crude and refined products, according to new data from the American Petroleum Institute (API).
API estimates show crude inventories rose by 1.7 million barrels in the week ending December 26, following a 2.4 million-barrel build the previous week. Despite the recent increases, crude stocks remain lower on a year-to-date basis, with a net decline of 5.1 million barrels so far this year, based on API calculations.
Separately, the U.S. Department of Energy reported that crude volumes in the Strategic Petroleum Reserve (SPR) increased by 200,000 barrels to 413.2 million barrels in the same week, as the federal government continues efforts to replenish emergency reserves.
Production and Price Trends
U.S. crude oil production edged lower in the week ending December 19, slipping to 13.825 million barrels per day (bpd) from 13.843 million bpd the previous week, according to the Energy Information Administration (EIA). Output remains 262,000 bpd higher than levels recorded at the start of the year.
Oil prices showed a limited reaction to the inventory data. At 12:56 pm ET, Brent crude traded flat at $61.95 per barrel, down $0.50 from the same time last week. WTI slipped 0.21% to $57.97 per barrel.
Refined Product and Storage Developments
Refined fuel inventories posted stronger gains. Gasoline inventories rose by 6.2 million barrels in the week ending December 26, following a 1.1 million-barrel increase in the prior week. EIA data shows gasoline stocks are now slightly above the five-year seasonal average.
Distillate inventories, including diesel and heating oil, increased by 1 million barrels, after a 700,000-barrel gain the previous week. Despite the rise, distillate stocks remained 5% below the five-year average as of the week ending December 19.
Inventories at Cushing, Oklahoma, the delivery hub for WTI crude futures, also continued to build, rising by 800,000 barrels after a 600,000-barrel increase in the previous week.