US crude stocks rose by 2.574 million barrels, to 346.73 million barrels the week ended September 16, as imports and production recovered, offsetting an increase in crude runs, data released by the American Petroleum Institute showed Tuesday.
US crude production climbed to 5.14 million b/d from 4.59 million b/d, likely because of a recovery in the US Gulf of Mexico following the passing of Tropical Storm Lee, which hit the area the weekend of September 4-5.
US imports climbed 158,000 b/d last week to 8.875 million b/d, with increases on the Atlantic Coast, Gulf Coast, and Midwest outweighing declines in the West Coast and Rockies regions.
The largest stock build was seen on the USGC, which rose 2.373 million barrels, to 173.138 million barrels, API's data showed. USAC crude stocks were up 1.649 million barrels at 12.952 million barrels, while Midwest stocks fell 1.627 million barrels, to 95.766 million barrels.
Stocks at the NYMEX crude contract delivery point of Cushing, Oklahoma, fell another 317,000 barrels, to 31.939 million barrels. Cushing stocks have fallen 10.475 million barrels since the week ended May 6, according to API.
US refinery operations, meanwhile, climbed to 84.4% of capacity from 83.9%, with the USAC rising 4.3 percentage points to 74.6% of capacity, likely as refiners continued to recover from the passing of Hurricane Irene, which hit the region the weekend of August 27-28.
But declines in refinery operations were seen elsewhere, which possibly reflected the beginning of the fall maintenance season. Midwest refiners were operating at 84.8% of capacity, down 1.3 percentage points, while USGC refiners were operating at 87.5% of capacity, down 1.5 percentage points. USWC refinery operations were at 81.6% of capacity, dropping 1.9 percentage points, the API data showed.
The US crude stock build, and drop in crude runs through much of the country, could prove bearish for the price of crude on NYMEX, as analysts polled by Platts were looking for a stock draw of 1 million barrels.
As usual, the market will likely wait for confirmation from the US Energy Information Administration data due out Wednesday morning.
In products, US gasoline stocks rose 62,000 barrels, to 212.747 million barrels last week, below analyst expectations of an 800,000-barrel rise, as imports fell 109,000 b/d, to 634,000 b/d, and demand increased.
Inventories were down 15.006 million barrels on the year, with a drop of 706,000 barrels along the USAC offsetting a 1.252 million-barrel increase in the Midwest. USGC gasoline stocks rose 91,000 barrels.
At the same time, production of gasoline in the US rose 444,000 b/d to 9.999 million b/d. Analysts polled by Platts had anticipated a recovery in production following Tropical Storm Lee.
USGC gasoline production rose 20,000 b/d, to 2.361 million b/d, while USWC production was up 357,000 b/d, at 2.039 million b/d.
The small US stock decline in gasoline came as demand rose 593,000 b/d, to 9.780 million b/d, according to API's data.
US distillate stocks rose a modest 81,000 barrels, to 157.208 million barrels, far below analyst expectations of a 1.2 million-barrel rise as the market prepares for heating oil season.
Stocks were mostly lower across the US with the exception of the USAC, where distillate inventories rose 529,000 barrels, to 61.076 million barrels, and the Midwest, where stocks were up 849,000 barrels at 29.168 million barrels.
US ULSD stocks rose 824,000 barrels, while heating oil stocks fell by 525,000 barrels.
US demand for distillate fuel oil fell 43,000 b/d, to 4.219 million b/d on the week.
