Commercial crude oil inventories in the United States fell by 3.3 million barrels during the week ending on 21 March, according to data published by the Energy Information Administration (EIA) on 26 March. This unexpected drop contrasts with analysts’ expectations of an increase of around 2 million barrels, based on the median of a consensus compiled by Bloomberg.
Statistical adjustment and market impact
According to the EIA, the variation is largely attributable to a weekly statistical adjustment. The agency deducted approximately 441,000 barrels per day from the volumes recorded on the US market, a correction not reflecting actual changes in activity for the week in question. Excluding the Strategic Petroleum Reserve, total inventories now stand at 433.6 million barrels.
In parallel, the US Strategic Petroleum Reserve was slightly replenished by 200,000 barrels, bringing its total volume to 396.1 million, the highest level since November 2022. Inventories at the Cushing terminal in Oklahoma, the main delivery hub for the West Texas Intermediate (WTI) contract, also declined by approximately 800,000 barrels.
Stable production and trade movements
US crude oil production remained steady at 13.57 million barrels per day. Refineries operated at 87% of their capacity, compared with 86.9% the previous week, indicating a slight increase in activity. On the trade front, imports rose by nearly 15%, while exports fell marginally by 0.75%, reaching 4.60 million barrels per day.
Reaction from oil markets
Following the release of the data, crude prices continued to climb from earlier in the day. The WTI barrel for April delivery rose by 1.33% to $69.91. Meanwhile, Brent crude from the North Sea for May delivery increased by 1.18% to $73.88. This movement remains consistent with typical market dynamics, whereby tightening inventories tend to support prices.
