U.S. commercial crude oil stocks rose 4.5 million barrels during the week ended March 6, U.S. Energy Information Administration (EIA) data showed.Analysts surveyed by Platts on Monday had expected crude oil stocks to increase 4.2 million barrels week over week.At 448.9 million barrels, inventories pushed further into record-high territory.

Crude oil imports dropped sharply the week ended March 6, though stocks still built as production was estimated to have risen 42,000 barrels per day (b/d) to 9.366 million b/d. Daily crude oil output exceeded the year-ago level by 14.5%.

Stocks at Cushing, Oklahoma, increased 2.3 million barrels, marking a return to large, weekly builds at the New York Mercantile Exchange (NYMEX) futures contract delivery point.

In 2015, Cushing stocks averaged an increase of 2 million barrels each week through February. For the week ended February 27, however, Cushing inventory rose only 536,000 barrels, sparking debate as to whether or not the pace was set to decelerate.

At 51.5 million barrels, Cushing stocks are 300,000 barrels shy of their record high set in 2013 and represent 72.7% of working capacity.
By region, the largest build occurred on the U.S. Gulf Coast (USGC), where stocks rose 2.54 million barrels to 222.4 million barrels.

USGC refineries were less active the week ended March 6, as crude oil runs dipped 88,000 b/d to 7.8 million b/d, helping stocks accumulate. USGC crude oil imports were down 251,000 b/d, mitigating the region's stock build.

Total U.S. crude oil imports fell 575,000 b/d to 6.8 million b/d, which was below the EIA five-year low for the same reporting period.

Imports from Canada were down 29,000 b/d to 2.9 million b/d. Imports from Saudi Arabia fell 86,000 b/d to 659,000 b/d. Imports from Mexico decreased 73,000 b/d to 766,000 b/d.

U.S. crude oil runs rose 187,000 b/d to 15.3 million b/d, raising the refinery utilization rate 1.2 percentage points to 87.8% of operable capacity.

Analysts had expected a 0.5 percentage-point decline.

Refinery utilization dropped sharply in January and stayed low through February, as some refineries entered seasonal maintenance or performed unplanned repairs.

These refineries typically return in March and begin ramping up in preparation for the peak summer driving season, drawing more crude oil in the process.

DISTILLATE STOCKS RISE

Total U.S. distillate stocks increased 2.5 million barrels the week ended March 6, EIA data showed, compared with the 2.3 million-barrel decline analysts expected.

At 125.5 million barrels, distillate stocks were 6.9% below the EIA five-year average for the same reporting period.

The build was largest on the USGC. The region's combined low- and ultra-low-sulfur diesel stocks rose 1.3 million barrels to 39.1 million barrels, which is 8.5% above the EIA five-year average.

U.S. Midwest (USMW) combined stocks drew 150,000 barrels to 31.835 million barrels, a 4.1% surplus to the five-year average. U.S. Atlantic Coast (USAC) combined stocks increased 1 million barrels to 23.8 million barrels, a 3.6% deficit to the five-year average.

Gasoline stocks on the USAC -- home to the New York Harbor-delivered NYMEX futures contract -- built 432,000 barrels to 68 million barrels, a 12% surplus to the five-year average.

Implied demand* for gasoline slipped 115,000 b/d to 8.5 million b/d.

Total U.S. gasoline stocks were down 187,000 barrels to 239.9 million barrels the week ended March 6. Analysts had expected a 1.7 million-barrel decline.

USGC gasoline stocks increased 684,000 barrels to 79.7 million barrels, a surplus of 8.7% to the five-year average. USMW inventory was down 101,000 barrels to 54.2 million barrels, a deficit of 0.4% to the five-year average.

* Implied demand is the amount of product that moves through the U.S. distribution system, not actual end consumption.
Source: http://www.platts.com/pressreleases/2015/031115/no