US Crude Stocks Surge on Strategic Reserve Release

Analyst estimates for a shortfall vary, but are anticipated to fall between 1 million and 3 million bbl/d. U.S. oil production is rising, but it will not grow swiftly enough to offset all of those losses, according to the EIA.

David Gaffen, Reuters

U.S. crude stocks surged by more than 9 million barrels, in part due to releases from the nation’s strategic reserves, while gasoline and distillate inventories fell last week, the Energy Information Administration (EIA) said on April 13.

Crude inventories rose by 9.4 million barrels in the week to April 8 to 421.8 million barrels, far surpassing analysts’ expectations in a Reuters poll for an 863,000-barrel rise. Commercial stocks could keep rising in coming weeks as the U.S. is steadily releasing barrels from its strategic reserves to offset the expected shortfall from Russian exports.

“The sizable crude oil inventory rise is probably the number one thing,” said John Kilduff, a partner at Again Capital LLC in New York. “But the concomitant drops in gasoline and distillate fuels offsets what would otherwise be a bearish input from the crude number.”

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