Oil inventories rise toward the end of 2023

Crude oil inventories in the United States rose this week by 1.837 million barrels for the week ending December 22, according to The American Petroleum Institute (API), after recording a 939,000-barrel build in crude inventories in the week prior.

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API data shows a net build in crude oil inventories in the United States of just over 21 million barrels so far this year.

Gasoline inventories fell this week by 480,000 barrels, after 669,000-barrel increase in the week prior. As of last week, gasoline inventories are now 2% below the five-year average for this time of year.

Distillate inventories also rose this week, with a small build of 270,000 barrels, after rising by 2.738 million barrels in the week prior. Distillates are roughly 10% below the five-year average.

Cushing inventories rose by 1.57 million barrels, after rising by 1.853 million barrels in the previous week.

On Monday, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by 800,000 barrels. Inventories are now at 353.3 million barrels, with total purchases for the SPR totaling more than 6 million barrels since the Biden Administration began its buyback program.

Oil prices were trading down ahead of API data release as the year draws close to the end. At 10:00 am ET, Brent crude was trading down 0.67% at $80.53—an increase of just over $1 per barrel compared to where it was this same time last week. The U.S. benchmark WTI was trading down on the day by 0.85% at that time, at $74.93–a decrease of nearly $5 per barrel compared to this time last week.