U.S. crude oil inventories rise while fuel stocks fall

U.S. crude oil inventories rose last week, defying expectations, while inventories of key fuels such as gasoline and distillates declined, according to data released by the Energy Information Administration (EIA) on Tuesday.

The EIA reported a 2.2 million barrel increase in commercial crude stocks for the week ended May 10, bringing total inventories to 456.8 million barrels. Analysts surveyed by Reuters had projected a 1.8 million barrel drawdown. The rise in crude inventories contrasted with declines in refined product stocks, which fell by 1.9 million barrels for gasoline and 1.1 million barrels for distillates, including diesel and heating oil.

The unexpected build in crude inventories suggests potential oversupply concerns, though the decline in fuel stocks may indicate stronger demand or reduced refining activity. Gasoline inventories now stand at 228.6 million barrels, while distillate inventories total 114.7 million barrels. Crude stocks at the Cushing, Oklahoma, storage hub—the delivery point for the U.S. benchmark West Texas Intermediate (WTI)—increased by 1.1 million barrels to 34.6 million barrels.

Market analysts attributed the mixed signals to shifting refinery operations and seasonal demand patterns. Refinery utilization rates rose to 91.2% from 90.5% the prior week, signaling increased processing activity. However, the divergence between crude and fuel inventories underscores ongoing volatility in the oil market amid evolving supply and demand dynamics.

Brent crude futures were trading marginally lower at $82.45 per barrel following the data release, while WTI futures held steady at $78.10 per barrel. The EIA’s report follows recent geopolitical developments in the Middle East and ongoing OPEC+ production cuts, which continue to influence global oil market sentiment.