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U.S. crude stockpiles decreased last week after rising the week before, according to a report from the federal office for energy data. This was done to relieve the tight market supply that could result in high gasoline prices.
The Weekly Petroleum Status Report from the Energy Information Administration, or EIA, revealed that demand for finished fuel products was lower last week due to an unexpected increase in petrol stockpiles and a smaller-than-expected reduction in distillate inventories.
According to the EIA, during the week ending April 14, crude balances in storage decreased by 4.581 million barrels. The amount of crude stockpiles increased by 0.597M barrels in the week before April 7.
Despite the United States government released 1.58 million barrels from the Strategic Petroleum Reserve (SPR) last week, a crude draw was still recorded. After pulling 1.6 million barrels the week before, on April 7, and 3.7 million barrels the week before, on March 31, this was the third SPR draw of the year.
Since late 2021, the SPR has played a significant role in the Biden administration’s efforts to balance out the limited crude supply that had increased fuel prices for Americans. The SPR’s crude balance had dropped to its lowest level since November 1983 as of last week.
The EIA reported a rise in gasoline inventories of 1.3 million barrels, vs a forecasted loss of 1.267 million barrels and a previous weekly decline of 0.331 million barrels. The most popular fuel product in the US is petrol for automobiles.
Regarding distillate crude stockpiles, the EIA recorded a 0.356M barrel draw, less than the 0.606M barrels used the previous week and less than the 0.927M barrel drop that was anticipated. Distillates are refined to create jet fuel, heating oil, and diesel for cars, trucks, buses, trains, and ships.
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