U.S. commercial oil reserves surged last week, according to data released Thursday by the U.S. Energy Information Administration (EIA).
In the week ending Nov. 30, these commercial reserves increased by 1.7 million barrels (mb), according to Bloomberg consensus, exceeding the 1.5 million barrels (mb) expected by analysts.
This increase was offset by a new reduction in strategic reserves, which fell another 2.7 million barrels (mb) to its lowest level since December 1983.
President Joe Biden’s government began the process of rebuilding these reserves in December, calling for an offer of 3 million barrels, but effective purchases will be made in a matter of weeks.
The increase in commercial inventories was largely due to lower refinery utilization, which was well below last week’s 92.0% to reach a 22-month low of 79.6%.
Mizuho Financial Group’s Robert Yawger said the difference was due to the impact of winter storm Elliot in the United States at the end of December, especially as it caused a bulge at several refineries in Texas.
Slowdowns at refineries were partially offset by lower imports (-9%) and higher exports (+21%).
This Thursday’s report showed a significant drop in demand for refined products in the US, down 20% from the previous week.
This decline is particularly pronounced for distillate products, including gasoline (-19%) and domestic heating fuels (-28%).
Source: Diario.Elmundo