According to the latest report from the Energy Information Administration (EIA), US crude inventories witnessed a significant surge, surpassing forecasts by a wide margin.
This unexpected increase in crude stocks, along with higher-than-expected fuel inventories, has raised concerns about the anticipated peak summer demand in the weeks ahead.
During the week ending June 9, the EIA reported a substantial rise of 7.919 million barrels in the US crude inventories balance, diverging greatly from the 1.482 million barrels build predicted by industry analysts tracked by Investing.com.
In the previous week leading up to June 2, crude stockpiles had decreased by 0.451 million barrels, indicating a notable shift in inventory levels.
It is worth noting that the EIA’s crude build comes with a slight caveat: the release of 1.9 million barrels from the US Strategic Petroleum Reserve. Excluding this release, the inventory increase would have been around 6 million barrels.
Regarding gasoline inventories, the EIA reported a build of 2.108 million barrels, surpassing analysts’ expectations of a 0.637 million barrel increase. This follows a previous rise of 2.746 million barrels. Gasoline remains the primary fuel product in the United States.
In terms of distillate stockpiles, the EIA observed a build of 2.123 million barrels, surpassing the forecasted rise of 0.922 million barrels. This comes after a decline of 5.075 million barrels in the previous week. Distillates serve as the raw material for heating oil, diesel used by trucks, buses, trains, and ships, as well as jet fuel.
The notable increase in crude inventories, along with the unexpectedly higher fuel stocks, has cast doubts on the typical surge in summer demand expected during this period. Market observers will closely monitor these developments as they may impact commodity markets.
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