U.S. crude oil stocks rose 2.6 million barrels to 388.1 million barrels during the reporting week ended November 8, outpacing analysts’ expectations, as imports jumped alongside a rise in domestic production, U.S. Energy Information Administration (EIA) data showed this week. The weekly build sent the surplus of crude oil stocks to the EIA five-year average to 12.8% for the week ended November 8. That's up from 11.6% the week ended November 1 and up from an 8.6% surplus a month earlier.

The rise in stocks was more than analysts’ expectations of a 1.8 million-barrel build.

Crude oil stocks rose the most in the U.S. Midwest, up 3 million barrels, while in the U.S. Gulf Coast (USGC), crude oil stocks increased 1.4 million barrels.

Stocks at the New York Mercantile Exchange (NYMEX) hub at Cushing, Oklahoma, rose for the fifth consecutive week, up 1.7 million barrels to 38.2 million barrels. The surplus to the EIA five-year average rose to 24.3% the week ended November 8 -- that's more than double the surplus from a month ago when Cushing stocks were at 32.6 million barrels.

U.S. refinery utilization rates rose to 88.7% of capacity, up 1.9 percentage point, the week ended November 8. USGC run rates rose to 89.5% of capacity, up 3.2 percentage points, as refineries return from maintenance periods. USGC run rates had been limited due to seasonal turnarounds, dropping to 86% of capacity for the week ended October 25.

Crude oil imports made a comeback the week ended November 8, rising to 7.84 million barrels per day (b/d), up from 7.22 million b/d the week ended November 1. Saudi Arabia accounted for the majority of the increase in imports, rising 1.1 million b/d to 1.9 million b/d – the highest level in four weeks.

Imports from Venezuela rose 209,000 b/d to 789,000 b/d, and Canadian imports rose 107,000 b/d to 2.39 million b/d.

Despite the increase in imports, domestic production continued to push higher. Production in the lower 48 states rose 107,000 b/d to 7.44 million b/d. That's 1.3 million b/d more than production levels a year earlier.

Production continued to surpass imports the week ended November 8, although the spread between the two figures narrowed to 137,000 b/d, from 634,000 b/d the week ended November 1.

U.S. GASOLINE STOCKS FALL FOR FIFTH STRAIGHT WEEK

U.S. gasoline stocks declined 800,000 barrels to 209.2 million barrels -- the fifth weekly draw in stocks at a time when seasonal builds are the norm.

Analysts polled by Platts had been expecting a larger 1.2 million-barrel draw as demand has firmed in recent weeks.

Gasoline stocks on the U.S. Atlantic Coast -- home of the New York delivery point for RBOB -- fell 1.2 million barrels the week ended November 8 to 52.8 million barrels. But stocks in that region were still amply supplied at 2.2 million barrels above the EIA five-year average.

Implied demand* for U.S. gasoline fell 259,000 b/d to 9.03 million b/d after two consecutive weeks of increases. Still, demand remained above the key 9 million b/d mark and is more than 166,000 b/d above the EIA five-year average.

At the same time, gasoline production charged 1.08 million b/d higher to 9.43 million b/d, landing 24,000 b/d above the EIA five-year average of 9.07 million b/d.

U.S. distillate stocks fell 500,000 barrels to 117.3 million barrels, less than expectations of a 1.2 million-barrel draw. Of that, ultra low sulfur diesel stocks declined 200,000 barrels to 94.4 million barrels the week ended November 8.

A 1.2 million-barrel draw in Midwest stocks and incremental declines in other regions were mostly offset by a 1.5 million-barrel build on the USGC.

Implied demand* is the amount of product that moves through the U.S. distribution system, not actual end consumption.
Source: Platts