US crude builds extend for fourth week as slower exports offset strong refinery demand

US crude oil inventory builds extended for a fourth straight week in the week ended April 18, US Energy Information Administration data showed April 23, as slower exports offset an uptick in refinery demand.

US commercial crude stocks climbed 240,000 barrels to 443.1 million barrels in the week ended April 18, EIA data showed, putting volume at the highest outright level since the week ended July 5, 2024, but leaving stocks 5.7% behind the five-year average for this time of year.

The build ran counter to American Petroleum Institute data released late April 22 that had shown a 4.6 million barrel draw but was in line with the 500,000 barrel build forecast by analysts surveyed by Platts, part of S&P Global Commodity Insights, on April 21.

Despite the top-line build, US Gulf Coast crude stocks drew down 1.01 million barrels and inventories at the NYMEX delivery hub of Cushing, Oklahoma, dipped 90,000 barrels on the week.

US crude exports averaged 3.55 million b/d, down 1.55 million b/d from the week prior. Arbitrage economics for US exports have deteriorated in recent weeks. The arbitrage incentive for moving WTI MEH into Rotterdam averaged minus 24 cents/b in the five days ended April 22, Commodity Insights data showed April 23, compared with an April-to-date average of 52 cents/b.

Nationwide refinery utilization climbed 1.8 percentage points to 88.1% of capacity, moving 3.6% above the five-year average. Meanwhile, total refinery net crude inputs averaged 15.89 million b/d, up 330,000 b/d on the week and 5.7% above normal for this time of year.

Rising runs weighed on margins. The WTI MEH cracking margin averaged $11.81/b in the week ended April 18, Commodity Insights data showed April 23, lower than the April to-date average of $12.19/b.

Gasoline stocks plunged 4.48 million barrels to 229.54 million barrels in the most recent reporting week, marking the largest one-week draw since the week ended Oct. 4, 2024. The decline left stocks 2.2% behind the five-year average and at a fresh year-to-date low, EIA data showed.

The draw extended gasoline inventory declines for an eighth straight week and marked the longest stretch of consecutive stock draws since April 2023.

Product supplied for gasoline -- the EIA's proxy for demand -- averaged 9.41 million b/d, up 950,000 b/d on the week and 13.7% above normal for this time of year. Implied gasoline demand stood around 1 million b/d above year-ago levels, while total inventories were 2.8 million barrels higher than the same period in 2024.

Total product supplied for all refined products rose 1.75 million b/d on the week and was 9% above normal at 20.88 million b/d.

Counter-seasonal distillate draws extended for a third straight week, with stocks falling 2.35 million barrels to 106.88 million barrels. The draw put distillate stocks 13.3% below normal for this time of year, opening the widest deficit to the five-year average since the week ended Nov. 17, 2023.