Weekly US oil inventories jump amid record domestic output, DoE says

Weekly US crude oil stockpiles jumped over the latest reference period, as domestic output hit a fresh record and refinery inputs decreased.

According to the Energy Information Administration, the US Department of Energy's statistical arm, in the week ending on 15 February, commercial crude oil inventories increased by 3.7m barrels (consensus: 3.1m) to reach 454.4m barrels.

In Cushing specifically, the pricing point for West Texas Intermediate crude, inventories were up by 3.4m barrels.

Propping up stockpiles, the rate of domestic US crude oil production increased by a further 100,000 barrels a day to hit a record 12.0m b/d pace, even as net imports edged up by 69,000 b/d to 3.915m b/d.

A drop in refinery inputs also lent a hand, according to Yasemin Engin at Capital Economics.

Refineries operated at 85.9% of capacity.

"If the US oil juggernaut continues to produce at this pace, OPEC+ might have to cut output further in order to remove the excess supply in the market," Engin said.

"Higher production partially explains the build in stocks, but refinery inputs also fell slightly."

Looking more closely at the net import figure, imports in fact jumped by 1.312m b/d even as exports rose by 1.243m b/d, a trend that Engin put down to the widening price spread between Brent and WTI.

However, product inventories recorded "strong" draws, with inventories of both gasoline and gasoline each declining by 1.5m barrels, the EIA said.

As of 1943 GMT, front month Brent crude ouil futures were moving higher by 0.06% to $67.12 a barrel on the ICE, while similarly-dated WTI was down 0.263% to $57.01.