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U.S. Crude Stocks Surge by 7.27M Barrels to Year-High, Oil Prices Rebound

May 2, 2024, 10:54 AM

U.S. crude oil inventories experienced a significant increase last week, reaching their highest levels since June 2023, according to the Energy Information Administration (EIA). The reports indicated a rise of approximately 7.27 million barrels in crude oil stocks and a decrease in distillate inventories by 0.732 million. Overall, U.S. petroleum inventories, including crude, SPR, and refined products, rose by 8.452 million barrels. This surge in inventories led to a decline in oil prices, with the market reacting to the largest weekly increase in supplies. Following this, oil prices rebounded after initially dropping to a seven-week low. The increase in stocks was attributed to a drop in exports by 1.3 million barrels per day and a decrease in refinery demand by 230,000 barrels per day. Additionally, gasoline demand has been declining for four consecutive weeks.