Us crude inventories surge by 3.7 million barrels as spr draws down

A surge in US crude oil inventories has offset some of the market's anxiety over geopolitical tensions and physical supply disruptions, with the American Petroleum Institute estimating a 3.719 million barrel build in the week ending April 3.

Api reports 3.7 million barrel crude inventory increase

The weekly gain marks a stark contrast to the 10.263 million barrel drop recorded the previous week, and comes in well above the 1.598 million barrel draw projected by analysts. It's the largest build since February 14, according to data going back to 2001.

US crude oil inventories now stand at 476.8 million barrels, up 11.8 million barrels from the same period last year, the API said. While this represents a 2.5% y/y increase, it still lags the 5-year average for this time of year.

Strategic petroleum reserve sees second consecutive drawdown

Meanwhile, the Strategic Petroleum Reserve (SPR) continued its downward trend, with 1.8 million barrels exiting the stockpile in the week ending April 3. This marks the second consecutive week of draws after a year-long buildup.

As of April 3, the SPR held 413.3 million barrels, leaving it 312.2 million barrels shy of its 725.5 million barrel maximum capacity.

Despite the inventory gains, product supplies were mixed. Gasoline inventories fell by 4 million barrels in the week ending April 3, while distillate inventories dropped by 600,000 barrels.

The price of Brent crude declined 56 cents to $109.20 per barrel by the afternoon of April 3, while West Texas Intermediate (WTI) slipped 29 cents to $112.10 per barrel. Both benchmarks remain elevated, however, due to ongoing supply disruptions in the Middle East and North Africa.