Stockpiles of US oil crude ballooned by nearly 21.6 million barrels last week after a snowstorm forced a shutdown of refineries in the heart of the United States' energy heartland of Texas, causing an inventory pileup even bigger than that seen at the height of last year's coronavirus-related demand destruction, government data showed on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 03rd March, 2021) Stockpiles of US oil crude ballooned by nearly 21.6 million barrels last week after a snowstorm forced a shutdown of refineries in the heart of the United States' energy heartland of Texas, causing an inventory pileup even bigger than that seen at the height of last year's coronavirus-related demand destruction, government data showed on Wednesday.
The Energy Information Administration (EIA) reported a crude stock build of 21,563,000 barrels for the week ended February 26. That build was larger than the 19.2 million-barrel one seen during the week to April 10, 2020, when demand for oil cratered amid stiff economic lockdowns prompted by the coronavirus outbreak.
Industry analysts polled by US media had expected a crude stockpile decline of around 1,300,000 barrels, for last week.
EIA data showed the build in crude stocks came as US refineries ran at just 56 percent of operable capacity last week, versus the previous week's 68.6 percent rate. Refinery rates have plummeted since the February 13-17 snowstorm that hit Texas, the biggest US state for oil and gas production, as well as refining.
The data also showed that crude imports rose 1.7 million barrels per day (bpd) last week to reach 6.3 million bpd. Production gained as well by 300,000 bpd to 10 million bpd, adding to supplies, while crude exports were barely changed at 2.35 million bpd.
Inventories of motor gasoline, or petrol and stockpiles of distillates, which include heating oil, also declined, according to the data.
Gasoline inventories fell by 13.6 million barrels versus the industry consensus for a draw of 2.3 million. Distillates stocks fell by 9.7 million against average forecasts for a drop of 3.0 million, as frigid temperatures across the United States sparked extraordinary heating demand.
