The Energy Information Administration (EIA) revealed that domestic crude inventories jumped significantly last week — by 10 million bbl. They now sit at 470.6 million bbl, which is nearly 35 million bbl more than the level last year at this time. Crude inventories have not been this high since September 2017, according to EIA’s data. An all-time record high for domestic crude production last week — at 12.3 million b/d — contributed to the substantial growth in U.S. crude stocks. Growing domestic crude stocks could play a role in helping to keep gas prices low this summer, since crude comprises roughly 50% of the cost American motorists pay at the pump. However, if crude exports from the U.S. increase this summer, the domestic crude that could be used to make gasoline for American motorists will be siphoned off to meet restricted supply in the global crude market.
Total Domestic Crude Inventories Spike Ahead of Summer