US crude stocks grow unexpectedly

Front-month ICE Brent crude futures dropped by around $0.53/bbl in the first 30 minutes after official weekly US crude stock figures were released today.

PHOTO: Oil refinery complex with big American flag displayed, and fumes coming out from the chimney. Getty Images

Commercial US crude inventories rose by 1.34 million bbls on the week, to 432.40 million bbls on 5 January, according to the EIA.

The weekly stock build ran counter to the American Petroleum Institute's (API) projection of a 5.2 million-bbl draw a day earlier.

Official EIA data showed that US refinery utilisation dropped by a marginal 0.6 percentage points to 93% last week.

Gasoline stocks jumped by 8.03 million bbls over the week to 245 million bbls - the highest since February 2022.

Distillate stocks, which include diesel and gasoil, have also risen by 6.53 million bbls to 132 million bbls – the highest since September 2021.

By Debarati Bhattacharjee

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