Recent data from the US Energy Information Administration showed a surprise rise in the country’s crude oil inventories last week, while gasoline and distillate inventories also roseas refining activities kept increasing.

According to the data, crude oil inventories rose by 1.2 million barrels to reach 455.9 million barrels in the week ending May 31, contrary to expectations of a decline of 2.3 million barrels by analysts polled by Reuters.

This increase was particularly concentrated in the inventories of the delivery center in Cushing, Oklahoma; it increased by 854 thousand barrels.
On the other hand, the data indicated an increase in crude consumption in refineries by 61 thousand barrels per day, reaching 17.1 million barrels per day, which is the highest level since December 2019. The refinery-operating rate also increased by 1.1 percentage points during the week to reach 95.4% of their total capacity. This is the highest level in a year.

In terms of oil derivatives, the data showed an increase in gasoline stocks by 2.1 million barrels during the week to reach 230.9 million barrels, exceeding the expectations of analysts in the Reuters poll for an increase of only two million barrels.

US Secretary of Energy Jennifer Granholm stressed the acceleration of the pace of replenishing the strategic oil reserve with the completion of maintenance of storage facilities by the end of the yearand referred to the possibility of increasing purchases to more than 3 million barrels per month, aiming to benefit from lower prices and achieve balance with market needs.

Granholm pointed to the current adequacy of global oil supplies, stressing the purchase of oil at reasonable prices of less than $80 per barrel.

On another level, the Minister announces the imminent completion of a comprehensive review of liquefied natural gas exports by the first quarter of 2025, with expectations that it will not affect the competitiveness of the United States in the market due to the high rates of declaration of exported quantities compared to the actual shipment volume.

The Biden administration faced criticism from the oil industry and Republicans over its temporary decision to halt the export of liquefied natural gas, a decision that Granholm clarified did not cancel any previously issued permits.