US Refinery Production Soars, Yet Crude Oil Inventories Continue to Shrink, EIA Reports
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US refineries are running at near full tilt, yet crude oil inventories continue to shrink, according to the latest weekly report from the Energy Information Administration (EIA). For the week ending May 10, 2024, US crude oil refinery inputs averaged 16.3 million barrels per day, a gain of 307,000 barrels per day over the previous week. Refineries operated at 90.4% of their operable capacity, pushing gasoline and distillate fuel production higher.
Despite this surge in refinery activity, US commercial crude oil inventories (excluding the Strategic Petroleum Reserve) fell by 2.5 million barrels to 457 million barrels, marking a 4% deficit compared to the five-year average for this time of year.
Gasoline inventories also declined, albeit slightly, falling by 200,000 barrels and remaining about 1% below the five-year average. Distillate fuel inventories saw a minor decrease as well, hovering around 7% below the five-year average.
"Total products supplied over the last four-week period averaged 20.1 million barrels a day, up by 0.7% from the same period last year," the EIA states. "Over the past four weeks, motor gasoline product supplied averaged 8.7 million barrels a day, down by 4.5% from the same period last year. Distillate fuel product supplied averaged 3.6 million barrels a day over the past four weeks, down by 5.3% from the same period last year. Jet fuel product supplied was up 3.7% compared with the same four-week period last year."
The price of West Texas Intermediate crude oil rose to $79.81 per barrel on May 10, 2024, a gain of $0.16 from the previous week and a notable $9.79 increase from a year ago. This upward price pressure reflects the tightening supply picture despite surging refinery production.
At the retail level, gasoline prices dipped slightly, averaging $3.608 per gallon on May 13, 2024, a $0.035 decline from the previous week. However, with crude oil prices on the rise and inventories continuing to shrink, the potential for upward pressure on gasoline prices looms as the summer driving season approaches.