EIA: Crude Oil Stocks Rise, Distillate Stocks at 20YR Low


   
Karim Bastati
DTN Analyst

   Commercial crude oil inventories in the U.S. unexpectedly rose last week, 
according to Energy Information Administration data. In its weekly report 
published Wednesday, EIA saw crude oil stocks adding 3.5 million bbls in the 
week ending May 9. This came despite a 330,000 bpd week-on-week increase in 
crude oil input into refineries, as net imports jumped 423,000 bpd. At 441.8 
million bbls, crude oil inventories were 3.3% below year-ago levels and 
remained 4.6% below the five-year average.

   The reporting agency also saw nationwide distillate stocks continuing to 
shrink. Distillate fuel oil inventories dropped 3.2 million bbls in the 
reviewed week to 103.6 million bbls, marking the lowest weekly data point since 
April 2005. Lower production and slightly higher demand contributed to the 
tightness. Over the past four weeks, distillate fuel oil production averaged 
4.6 million bpd, 100,000 bpd below year-ago levels, while product supplied -- a 
proxy for demand -- was up 51,000 bpd year-on-year. International demand also 
pulled on inventories, with diesel exports outpacing year-ago levels by 100,000 
bpd over the past four weeks.

   The 20-year low, however, should be no cause for concern given that the 
domestic market remains well supplied in terms of days of cover. Given that 
diesel demand was still lagging pre-pandemic levels, EIA estimated current 
inventory levels to be able to meet 28.1 days of demand, which is in line with 
typical seasonal levels.




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