U.S. crude oil stockpiles experienced an increase last week as imports rose while exports fell to their lowest levels since January, according to the Energy Information Administration (EIA) report on Wednesday. Crude inventories grew by 2.6 million barrels, reaching a total of 442.3 million barrels in the week ending April 4. This rise was larger than what analysts had anticipated, with a Reuters poll predicting only a 1.4 million-barrel increase. The report indicated that net U.S. crude imports climbed by 360,000 barrels per day, totaling just under 3 million barrels per day.
Conversely, exports dropped by 637,000 barrels per day, falling to 3.2 million barrels per day. Industry experts, like John Kilduff from Again Capital, expressed concerns over the potential loss of access to the crucial China market. With China retaliating against U.S. tariffs by imposing increased tariffs on U.S. goods, the future of U.S. oil exports could be significantly impacted. Following the EIA’s data release, oil prices saw a slight recovery but remained down by over 5%.
In addition to crude stock increases, gasoline inventories fell by 1.6 million barrels, totaling 236 million barrels, which was slightly above the expected 1.5 million-barrel drop. A decrease in gasoline product supplied reflected a decline in demand, dropping from 8.5 million barrels per day to 8.4 million barrels per day. This trend raised concerns among investors about potential slowdowns in consumption ahead of the typically high-demand summer season. Additionally, distillate stockpiles saw a significant decline, falling by 3.5 million barrels to 111.1 million barrels, contradicting expectations for a small increase.
Crude stocks at the Cushing, Oklahoma delivery hub rose by 681,000 barrels, while refinery crude runs increased by 69,000 barrels per day, with utilization rates reaching 86.7% of capacity.