US crude oil stockpiles rose last week, driven by increased imports and a decline in exports to their lowest level since January, according to the Energy Information Administration (EIA).
Crude inventories increased by 2.6 million barrels (mbbl) to 442.3mbbl for the week ending 4 April, surpassing analysts’ expectations of a 1.4mbbl rise.
Net US crude imports rose by 360,000 barrels per day (bpd) to just under three million barrels per day (/d) as exports decreased by 637,000bpd to /d.
John Kilduff, partner with Again Capital in New York, was quoted by Reuters as saying: “Exports are on the lower level and we will have to see if we are going to lose access to the China market, and whether we will see a diminished export situation going forward.”
China has announced tariffs on US goods in retaliation against US President Donald Trump’s tariff policy.
Beginning on 10 April, China will impose 84% tariffs on US goods, up from the previously announced 34%, as stated by the Finance Ministry.
Following the EIA data release, oil prices reduced some losses but remained down by more than 5%.
Gasoline stocks decreased by 1.6mbbl to 236mbbl, aligning with expectations for a 1.5mbbl draw.
The product supplied of gasoline, a proxy for demand, fell to /d from /d the previous week.
This lower consumption ahead of the peak summer demand season has concerned some investors.
Kilduff noted: “This is a bad number, and this might be evidence of what we are hearing from economists that there is a slowdown, and maybe people are scared of tariffs.”
Distillate stockpiles including diesel and heating oil fell by 3.5mbbl to 111.1mbbl, contrary to expectations of a 260,000-barrel (bbl) rise.
Crude stocks at the Cushing, Oklahoma, delivery hub increased by 681,000bbl, according to the EIA.
Refinery crude runs rose by 69,000bpd, and utilisation rates increased by 0.7 percentage points to 86.7% of capacity.
In a recent forecast, the EIA anticipated record levels of crude oil and natural gas production this year, along with increased demand for natural gas and electricity.
The agency’s short-term energy outlook projects significant growth in energy output and consumption over the coming years, with crude oil production averaging /d in 2025, with a further increase to /d in 2026.
