Crude inventories increased by 3.8 million barrels to 443.1 million barrels for the week ending March 6, significantly exceeding analysts’ expectations of a 1.1 million-barrel rise, according to a Reuters poll. The gains were driven by higher imports and a decline in exports.
At the Cushing, Oklahoma, delivery hub, crude stockpiles rose by 117,000 barrels, marking their highest level since August 2024, while Gulf Coast inventories reached their peak since June 2024. Net U.S. crude imports grew by 661,000 barrels per day, while exports fell by 563,000 bpd to 3.43 million bpd.
Oil futures responded positively following the report. Global Brent crude futures were trading at $90.84 per barrel, up $3.04, while U.S. West Texas Intermediate futures rose $2.57 to $86.02 a barrel by 10:38 a.m. ET (1438 GMT).
Meanwhile, gasoline stocks fell by 3.7 million barrels to 249.5 million barrels, surpassing expectations for a 2.6 million-barrel draw. Gasoline prices have surged in recent weeks, reaching $3.32 per gallon last week—an 11% increase from the prior week and the highest level since September 2024.
Rising fuel demand reflected consumers’ response to geopolitical uncertainty. Gasoline consumption jumped by 949,000 barrels per day to 9.24 million bpd, while distillate demand, which includes diesel and heating oil, rose by 367,000 bpd to 4.07 million bpd. Distillate stockpiles fell by 1.3 million barrels to 119.4 million barrels, outpacing expectations for a smaller decline.
Industry analysts linked the surge in fuel demand to fears over prolonged conflict in the Middle East. “It didn’t look like this war would be over soon, so everyone ran to the gas station to load up,” said Bob Yawger, director of energy futures at Mizuho. He also noted that rising refinery activity reflected attempts to capitalize on market conditions: “Refinery utilization is up, implying the refineries are getting the idea that they can make some money off this situation by tapping storage.”
Refinery crude runs rose by 328,000 bpd last week, lifting utilization rates by 1.6 percentage points to 90.8%. Total product supplied, a proxy for overall fuel demand, jumped to 21.2 million bpd from 19.87 million bpd the previous week.
The data underscores a U.S. oil market balancing higher crude inventories with surging consumer demand, amid uncertainty over global supply disruptions and geopolitical pressures.