Crude oil inventories in the United States saw an increase of 2.6 million barrels during the week ending April 4, according to new data from the U.S. Energy Information Administration released on Wednesday.
Crude oil prices were trading sharply down prior to the crude data release by the U.S. Energy Information Administration, continuing their slide after another volley in the tariff war between the United States and China was manifest in an announcement of 84% tariffs levied on the US beginning April 10. On Tuesday, the American Petroleum Institute (API) reported a draw of 1.057 million barrels in U.S. crude oil inventories amid a small gasoline build. The Brent benchmark was trading down another 3.79% on Tuesday at 9:45 a.m. ET at $60.44—a roughly $14 per barrel decrease from this same time last week. It is the lowest price for the international benchmark in years.
The WTI benchmark was trading down 3.78% at $57.33—also a $14 per barrel drop from last week’s levels.
For total motor gasoline, the EIA estimated that inventories decreased by 1.6 million barrels for the week to April 4, with daily production decreasing to an average 8.9 million barrels. This compares with an inventory decrease of 1.6 million barrels for the previous week and an average daily production of 9.3 million barrels.
For middle distillates, the EIA estimated a decrease of 3.5 million barrels, with production decreasing to an average of 4.7 million barrels daily. This compares to an inventory build of 300,000 barrels in the week prior, when production stood at an average of 4.7 million barrels daily. Distillate inventories are now 9% below the five-year average for this time of year.
Total products supplied over the last four weeks were down week over week for the third week in a row, averaging 19.6 million barrels per day—a 1.9% decrease from this time last year. Distillate products supplied over the last four weeks are up 7.3% compared to this time last year, while gasoline products supplied were down 2.8% from the same period last year.
By Julianne Geiger for Oilprice.com