For the first time in ten weeks, U.S. crude oil inventories have increased, reflecting a drop in exports and reduced refinery activity, according to the U.S. Energy Information Administration (EIA).
In the week ending January 24, commercial crude stockpiles, excluding the Strategic Petroleum Reserve, rose by 3.5 million barrels, bringing total inventories to 415.1 million barrels. This rise exceeded analysts’ expectations, who had projected an increase of 1.1 million barrels. Despite the buildup, crude stocks remain 6% below the five-year seasonal average.
The report also highlighted a decline in U.S. crude oil production, which fell by 237,000 barrels per day, settling at 13.2 million barrels per day. Lower refinery capacity utilization contributed to the stockpile increase, as refineries slowed operations amid maintenance and reduced demand.
Market Impact & Outlook
The unexpected surge in inventories may influence oil prices, as traders reassess supply-demand dynamics. Lower production levels and refinery cutbacks could signal potential price fluctuations in the coming weeks. Energy analysts will closely watch upcoming EIA reports and global market trends for further insights into the U.S. oil supply trajectory.
