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U.S. Crude Inventories Rise Sharply as Oil Prices Continue to Slide

by Krystal

U.S. crude oil inventories rose by 3.76 million barrels in the week ending April 25, according to estimates from the American Petroleum Institute (API). This increase far exceeded analysts’ expectations of a 390,000-barrel build. It followed a 4.565 million barrel drop the previous week.

So far in 2024, crude oil stockpiles have grown by more than 23 million barrels, based on Oilprice.com’s analysis of API data.

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The U.S. Department of Energy also reported a 1 million barrel rise in the Strategic Petroleum Reserve (SPR) last week, bringing the total to 398.5 million barrels. However, SPR levels remain well below pre-withdrawal volumes, following large releases under the Biden administration.

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The news coincided with falling oil prices. Brent crude was down $1.78, or 2.70%, trading at $64.08 per barrel as of 4:22 p.m. ET. This marked a $3 drop compared to last week. West Texas Intermediate (WTI) crude also fell, losing $1.81, or 2.92%, to $60.24 per barrel—a weekly decline of $4.

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Meanwhile, gasoline inventories dropped by 3.14 million barrels for the week, following a 2.18 million barrel decline the week before. The U.S. Energy Information Administration (EIA) noted that gasoline inventories are now 3% below the five-year seasonal average.

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Distillate inventories, which include diesel and heating oil, also saw a sharp decline of 2.52 million barrels, after falling 1.64 million barrels the previous week. As of April 18, distillate stocks were already 13% below the five-year average, EIA data showed.

At Cushing, Oklahoma—the main delivery hub for U.S. crude futures—stockpiles rose by 674,000 barrels, more than offsetting the 354,000 barrel drop recorded a week earlier.

The data highlights continued market volatility and supply adjustments, as traders weigh inventory shifts against weakening prices.

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