A rise in imports and reduced refining activity drove U.S. crude stocks higher last week, while gasoline and distillate inventories declined, the Energy Information Administration said on Wednesday.

Crude inventories rose by 5.2 million barrels to 421.2 million barrels in the week ended October 31, the EIA said, compared with analysts’ expectations in a Reuters poll for a 603,000-barrel rise.

Crude stocks at the Cushing, Oklahoma, delivery hub increased by 300,000 barrels last week, the EIA said. Net U.S. crude imports rose last week by 867,000 barrels per day.

OIL PRICES PARE LOSSES

Oil futures pared losses despite data showing a larger-than-expected buildup in inventories, inching into positive territory. Global Brent futures were trading at $64.45 a barrel, up 1 cent at 10:53 a.m. EST (1553 GMT), while U.S. West Texas Intermediate futures were up 3 cents to $60.60 a barrel.

“Oil went up because product stocks slipped, and at some point the market will realize you want to get product inventories back to normal levels,” said Phil Flynn, an analyst with Price Futures Group. “When refineries come out of maintenance, they are going to have to kick into a high gear and they are going to need lots of crude.”

The market is also watching a system of cold weather expected to hit the U.S. in the coming days, which could drive up demand for distillate fuels.

Refinery crude runs rose by 37,000 bpd, the EIA said, while utilization rates (USOIRU=ECI) fell by 0.6 percentage points to 86% in the week.

U.S. gasoline stocks dropped by 4.7 million barrels to 206 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 1.1 million-barrel draw.

In the U.S. Midwest, gasoline inventories were at a record low following issues at BP’s 440,000 barrel-per-day oil refinery in Whiting, Indiana, fuel traders said.

A fire ignited at the plant after an operational incident at the Whiting refinery last month, with multiple units taken offline due to the blaze. The refinery has since resumed operations.

On the U.S. Gulf Coast, gasoline stocks were at their lowest since October 2024.

Distillate stockpiles, which include diesel and heating oil, fell by 643,000 barrels to 111.5 million barrels, versus expectations for a 2 million-barrel drop, the EIA data showed.

Total product supplied, a proxy for demand, fell by 926,000 barrels per day to 20.36 million bpd in the week, while gasoline demand slipped 49,000 bpd to 8.87 million bpd. Distillate demand edged higher by 130,000 bpd to 3.71 million bpd.
Source: Reuters