Crude Oil Supplies in the United States Grow After the Release of Strategic Reserves

"The significant increase in crude oil inventories is certainly the most significant factor," said John Kilduff, a New York-based partner at Again Capital LLC. "However, the concurrent declines in gasoline and distillate fuels countered any negative input from the crude data."

The US will release 180 million barrels from its reserves over the next six months in an attempt to cool soaring oil prices caused by a supply shortage caused by Russia's invasion of Ukraine in February. Russia is the world's second biggest exporter, after only Saudi Arabia, with daily crude exports ranging between 4 and 5 million barrels.

Analyst estimates vary, but the shortage is expected to be between 1 and 3 million barrels per day. The United States' output is increasing, but not quickly enough to offset all of those losses. The US Energy Information Administration projected Tuesday that the United States' production would increase by 820,000 barrels per day to 12.01 million bpd in 2022.

Gasoline inventories in the United States declined by 3.6 million barrels, contrary to estimates for a 388,000-barrel decline.

Stockpiles of distillate fuel, which includes diesel and heating oil, decreased by 2.9 million barrels to 111.4 million barrels, the lowest level since 2014.

Diesel and jet fuel inventories have been declining as a result of robust international demand and stable economic activity. This week, product exports increased to a record 6.8 million barrels per day.

Crude oil refinery runs decreased by 425,000 barrels per day, while refinery utilization rates decreased by 2.5 percentage points to 90% of total capacity.