US oil inventories increased after winter storm

The Energy Information Administration (EIA) recorded an increase in crude oil stocks. It was driven by a slow recovery of refinery production after a forced shutdown due to freezing temperatures in the U.S.

Crude oil inventories rose by 19 million, for a total of 439.6 million barrels. At the same time, analysts polled by Reuters had expected a drop of 2.2 million barrels.

That's the biggest weekly gain since February 2021 and the third-largest increase on record.

Bob Yawger, executive director of Energy Futures at Mizuho, said it was evident due to the consequences of the freezing weather. This amount of crude oil means that refineries have not recovered yet.

The price of oil fell after the data release. However, it soon recovered quickly, as traders consider the increase in stocks as a one-time event after the freezing temperatures.

Refinery throughput rose by 831,000 barrels a day over the past week. At the same time, the refinery utilization rate rose by 4.5% to 84.1%.