US crude stocks jumped 10 million barrels last week -- the largest build in 13 years -- on a surge in imports and lower refinery run rates in the US Gulf Coast, data from the US Energy Information Administration showed Wednesday.
The crude build, to 394.1 million barrels for the April 11 reporting week, puts stocks at a 7.4% surplus to the EIA five-year average. The surplus has risen from 2.8% just six weeks ago.
Analyst Kyle Cooper of IAF Advisors said a 10 million-barrel build in commercial crude stocks was not typical for this time of year. He noted, though, that the total build was closer to 9.4 million barrels, as some 600,000 barrels of crude was reduced from the US Strategic Petroleum Reserve. The decline in SPR puts that storage at 695.1 million barrels as of last week. This reduction reflects a portion of the 5 million-barrel test sale of SPR crude by the US government, announced March 17.
Rob Merriam, manager of EIA's Weekly Petroleum Status report, said a large build in commercial stocks of this size is typically seen in January, when companies are replenishing barrels after shedding crude at the end of the year for tax purposes.
"It was a strong build this week," Merriam said. "We did have a large rebound in imports and domestic domestic production continues to boom along."
US crude imports rose 959,000 b/d to 8.27 million b/d, led by a 649,000 b/d increase in imports from Saudi Arabia and a 406,000 b/d increase in imports from Colombia.
At the same time, US crude oil production continues to grow. Domestic crude production reached 8.3 million b/d last week -- the highest since the 8.306 million b/d seen the week ended April 1, 1988.
In a survey on Monday, analysts polled by Platts were expecting a 2.4 million-barrel build in crude stocks for the reporting week ended Friday.
GULF COAST STOCKS HIT NEW RECORD HIGH
Gulf Coast crude inventories continue to reach record levels, with last week's stocks hitting 207.2 million barrels -- the highest on record for EIA data. The build puts stock up 5.2 million barrels from the week prior.
Crude stocks on the West Coast rose 4 million barrels last week to 55.8 million barrels.
Stocks in Cushing, Oklahoma -- delivery point for the NYMEX crude futures contract -- fell 800,000 barrels to 26.8 million barrels, putting inventories at the key hub at a 31.2% deficit to the EIA five-year average.
Overall, US refinery runs rose 1.3 percentage points to 88.8% of capacity last week, though Gulf Coast refiners reduced runs by 1.4 percentage points to 89.9% of capacity.
In the Midwest, refiners upped run rates by 7.5 percentage points to 91.2% of capacity. That is far above year-ago run levels of 82.7% of capacity.
Phillips 66 was performing unspecified planned maintenance at its 260,000 b/d Alliance refinery in Belle Chasse, Louisiana, a spokesman said last week. Also, a boiler was shut April 9 at Tesoro's 166,000 b/d Golden Eagle refinery in Martinez, California, a market source said.
Analysts also noted that Philadelphia Energy Solutions has completed a maintenance turnaround at its 350,000 b/d Philadelphia refinery.
US GASOLINE, DISTILLATE STOCKS DECLINE
US gasoline stocks fell 200,000 barrels to 210.3 million barrels last week, putting stocks more than 11 million barrels lower than the same week in 2013.
Gasoline stocks on the Atlantic Coast -- home of the New York delivery point for NYMEX RBOB -- rose 300,000 barrels to 54.2 million barrels last week. The build was offset by a 700,000-barrel draw in the Gulf Coast and a 900,000-barrel decline on the West Coast.
Analysts polled by Platts were anticipating a larger 1.7 million-barrel draw in gasoline stocks.
Implied demand for the motor fuel fell 380,000 b/d to 8.62 million b/d.
US distillate stocks fell 1.3 million barrels last week to 111.9 million barrels, more than analysts' estimates of a 200,000-barrel draw.
Demand for distillate fuel rose 238,000 b/d to 4.17 million b/d.
US Atlantic Coast combined low and ultra-low sulfur diesel stocks at 24.88 million barrels for the week ended April 11 were in line with the EIA's five-year average. That is narrowed from a deficit of more than 34% just nine weeks earlier. Stocks rose 613,000 million barrels from the previous week.
