U.S. Crude Oil Stockpiles Rise as Production, Imports Surge

U.S. crude oil stockpiles rose more than expected last week, driven by a surge in production and imports, according to data released by the U.S. Energy Information Administration (EIA). The increase in inventories, coupled with a rise in crude oil production and imports, contributed to a decrease in crude oil prices.

The EIA reported that U.S. crude oil inventories rose by 5.5 million barrels to 426 million barrels in the week ended Oct. 18, 2024, which was higher than the expected increase of 800,000 barrels (Harrup, 2024a). This increase in inventories, along with a rise in crude oil production and imports, contributed to a decrease in crude oil prices.

Domestically, the increase in crude oil inventories in the U.S. led to a decrease in crude oil prices. The EIA reported that the U.S. crude oil production remained unchanged at 13.5 million barrels per day (mbpd), while crude oil imports increased by 902,000 barrels per day (bpd) to 6.4 mbpd (Harrup, 2024a). This increase in supply, coupled with the rise in inventories, put downward pressure on crude oil prices. The EIA also reported that oil held in the Strategic Petroleum Reserve (SPR) rose by 760,000 barrels to 384.6 million barrels, further increasing the overall supply of crude oil in the U.S. (Harrup, 2024a).

Globally, the increase in crude oil inventories also affected the pricing dynamics of crude oil. The International Energy Agency (IEA) reported that global oil demand rose seasonally in the fourth quarter of 2024, posting robust annual growth of 1.5 million barrels per day (mbpd) (IEA, 2025). However, the increase in global oil supply, led by increased output from OPEC+ African producers, more than offset the seasonal declines in non-OPEC+ supply (IEA, 2025). This increase in global oil supply, combined with the rise in inventories, put downward pressure on crude oil prices.

In conclusion, the increase in crude oil inventories, both domestically and globally, has a significant impact on the pricing dynamics of crude oil. The rise in inventories, coupled with an increase in crude oil production and imports, puts downward pressure on crude oil prices. This impact is further validated by the EIA and IEA reports, which show the relationship between inventory levels, supply, and crude oil prices.