As of mid-October 2024, US crude oil stockpiles have risen, with a recent increase of 10.2 million barrels reported during the week ending October 11. This surge in inventories brings total commercial crude oil stocks to approximately 420.5 million barrels, about 5% below the five-year average for this time of year. The unexpected build-up in stockpiles has contributed to a drop in oil prices, reflecting that the market is well-supplied despite ongoing geopolitical concerns, such as tensions in the Middle East.
The US Strategic Petroleum Reserve remains stable, with stocks at 382.9 million barrels, showing a small increase from previous weeks. This build in crude reserves comes at a time when the US is balancing domestic production levels with global supply and demand dynamics. Meanwhile, refinery utilization rates remain relatively steady at around 86.7%, slightly down from previous weeks, which has contributed to the storage rise.
This increase in US crude inventories suggests that supply is sufficient to meet current demand, which has tempered upward pressure on oil prices.
