EIA DATA: Large US commercial crude build leaves stocks at 4-mth high

Quantum Commodity Intelligence - US crude oil stocks rebounded strongly last week, with an unexpected build in commercial stocks taking storage volumes 2% higher to a four-month high.

Weekly data from the Energy Information Agency (EIA) published Wednesday showed a chunky 16.3-million-barrel build in commercial stocks in the week to 2 February, well above analyst expectations of just 1.2 million barrels finding their way into storage.

Reserves in the Strategic Petroleum Reserve (SPR) remained at 371.6 million barrels for a fifth consecutive week, however.

That comes in the same week the government said it would resume sales from its reserves, a move that will put further pressure on state-owned inventories that are already at their lowest levels since 1984.

The Department of Energy (DOE) said Monday it would offer a further 26 million barrels of light sweet crude from its stores to meet its congressional mandate, offering the volumes from its Big Hill and West Hackberry sites for delivery from 1 April to 30 June.

Last month, an attempt to secure the first barrels from private sellers to top up its depleted reserve drew offers at tender that the government deemed uncompetitive.

Overall, Wednesday's report showed the moves left total US stock's at 843 million barrels, which is the highest since October.

The week's moves appeared to be largely down to domestic production finding its way into storage rather than from overseas barrels, with trade figures showing net imports dropping 1.1 million bpd – or more than a quarter – to a four-week low of just 3.1 million bpd.

That included a drop in exports, which were down 9% week-on-week at 3.1 million bpd. Imports were also down, dropping 12% to a four-week low of 6.2 million bpd.

On the production front, the EIA called total output steady week-on-week at 12.3 million bpd, which remains the highest figure since prices collapsed in April 2020.

Earlier in the week, the EIA's separate Drilling Productivity Report said US shale recovered 1% in January to 9.2 million bpd.

Its forecast showed February output continuing to rise, gaining another 0.9% to its highest since December 2019 at 9.3 million bpd, with March up another 0.8% at a record 9.4 million bpd.