U.S. crude oil inventories rose more than expected last week, while gasoline and distillate stockpiles declined as refinery maintenance and increased product exports tightened fuel supplies, according to data from the Energy Information Administration (EIA).
Crude stockpiles increased by 3.6 million barrels to 433.8 million barrels in the week ending February 28, surpassing analysts’ expectations of a 341,000-barrel rise. The build came as refinery crude runs fell by 346,000 barrels per day (bpd), and utilization rates dropped 0.6 percentage points to 85.9% of total capacity. Refinery activity has remained subdued since mid-January due to seasonal maintenance, with East Coast utilization rates plunging to 54.8%, the lowest since July 2020.
Gasoline inventories fell by 1.4 million barrels to 246.8 million barrels, compared with forecasts for a 369,000-barrel draw. Meanwhile, distillate stockpiles, which include diesel and heating oil, declined by 1.3 million barrels to 119.2 million barrels, against expectations of a 220,000-barrel increase.
The decline in fuel inventories was partly driven by a surge in U.S. product exports, which jumped to over 7 million bpd from 5.4 million bpd the previous week. “The report is constructive, with total petroleum inventories declining despite a crude build, which is the result of U.S. refineries still in maintenance,” said Giovanni Staunovo, an analyst at UBS.
Despite the drawdown in fuel stocks, crude prices extended losses following the report, with Brent crude futures falling to $68.70 per barrel, the lowest since December 2021. The drop reflected concerns over the U.S. crude build, OPEC+’s planned output increase, and the impact of Trump’s tariffs on global trade.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.1 million barrels, while net U.S. crude imports fell by 54,000 bpd.