Increase in US crude stockpiles, drop in exports due to China tariffs

From Yahoo Finance: 2025-04-09 11:20:00

U.S. crude oil stockpiles rose by 2.6 million barrels last week, reaching 442.3 million barrels, higher than expected. Imports increased while exports decreased to their lowest point since January. Gasoline inventories dropped by 1.6 million barrels, but demand fell slightly. Distillate stockpiles, including diesel and heating oil, also decreased by 3.5 million barrels.

In response to President Trump’s tariff policy, China announced a significant increase in tariffs on U.S. goods, raising them to 84%. This move could impact oil exports, potentially leading to a decline in the export market. Oil prices initially dropped over 5% following the news.

Despite the increase in crude oil stockpiles, gasoline inventories saw a drawdown of 1.6 million barrels. However, demand, indicated by product supplied of gasoline, dipped slightly to 8.4 million bpd. Investors are concerned about lower consumption leading into the peak summer demand season, possibly due to fears of tariffs and economic slowdown.

Refinery crude runs increased by 69,000 bpd, with utilization rates rising to 86.7% of capacity. Additionally, crude stocks at the Cushing, Oklahoma, delivery hub rose by 681,000 barrels. The data suggests a complex market situation influenced by trade tensions and economic factors.



Read more at Yahoo Finance: US crude stockpiles rise as exports hit Jan lows, EIA data shows