U.S. crude oil inventories saw an increase while fuel stocks declined in the past week, as reported by the Energy Information Administration (EIA) on Wednesday. Crude inventories rose by 1.4 million barrels, reaching 435.2 million barrels for the week ending March 7.
This increase was less than what analysts anticipated, as they expected a rise of 2 million barrels. Additionally, stockpiles at the Cushing, Oklahoma delivery hub decreased by 1.2 million barrels.
Following the report, oil futures experienced a surge. The global benchmark Brent crude futures climbed by $1.24 to $70.82 per barrel, while West Texas Intermediate futures rose by $1.41 to $67.66 per barrel.
Josh Young, chief investment officer for Bison Interests, noted that the smaller-than-expected oil build combined with larger draws in gasoline and diesel indicated stronger demand, which could potentially lead to higher oil prices. The Strategic Petroleum Reserve (SPR) recorded its highest crude inventory levels since 2022.
U.S. President Donald Trump has expressed intentions to fill the SPR to full capacity, a process that could take years and cost as much as $20 billion, according to U.S. Energy Secretary Chris Wright. Refinery crude runs increased by 321,000 barrels per day, with utilization rates climbing by 0.6 percentage points to 86.5%.
Meanwhile, gasoline stocks fell by 5.7 million barrels to 241.1 million barrels, exceeding expectations for a 1.9 million-barrel decline. Distillate stockpiles, which include diesel and heating oil, also dropped by 1.6 million barrels to 117.6 million barrels, surpassing the anticipated 800,000-barrel decline.
Net U.S. crude imports rose by 503,000 barrels per day to 2.18 million barrels, falling short of this year’s average of 2.24 million barrels. Analyst Matt Smith attributed this shift to low crude imports, which may be influenced by tariff concerns affecting Canadian flows, particularly amid maintenance activities at Phillips 66’s Bayway refinery in New Jersey.