US Crude Inventories Unexpectedly Build as SPR Replenishes and Gasoline, Distillate Stocks Rise

Oil markets rise on API inventory data as SPR stockpiles grow

In the latest weekly snapshot, the American Petroleum Institute reports a 2.4‑million‑barrel rise in U.S. crude inventories for the week ending December 19, a reversal from the previous week’s draw of 9.3 million barrels. OilPrice’s interpretation of API data shows a year‑to‑date net decline in crude stockpiles of about 6.7 million barrels.

Separately, the Department of Energy confirmed an 800,000‑barrel increase in the Strategic Petroleum Reserve, lifting SPR holdings to 413 million barrels as Washington continues replenishment efforts.

On the supply front, U.S. crude production slipped to 13.843 million barrels per day for the week of December 12,down from 13.853 mb/d the prior week. Despite the dip, output remains roughly 270,000 bpd above the start of the year.

Market pricing showed strength as of late trading. At 5:12 p.m. ET, West Texas Intermediate was up about 40 cents to approximately $62.47 per barrel, while Brent crude also traded near $62.47, marking a week‑over‑week rise of nearly $4 for a broader price recovery.

Fuel inventories also moved higher. Gasoline stocks rose by 1.1 million barrels for the week ended December 19, following a 4.8‑million‑barrel increase the week before. Distillates gained 0.7 million barrels, with both measures still below their five‑year seasonal averages as of mid‑December.

Cushing, the oil‑delivery hub for WTI futures, posted a 0.6‑million‑barrel build after a prior week of declines.

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What the numbers mean for the oil market

The week’s inventory data reinforce a mixed picture: crude supplies rose on the API drive, even as SPR stockpiles under the DoE continue to grow as policymakers focus on replenishment. The price action suggests traders are weighing near‑term demand prospects against a backdrop of ample supply in storage hubs and ongoing production trends.

Looking at the broader context, API‑tracked stock movements for the year point to a net dip in crude inventories, a dynamic that can support prices if demand remains firm or supply tightens later in the winter season. For further context, see the U.S. Energy facts Administration’s weekly petroleum status updates and related government data.

Key facts at a glance

Metric	Recent reading	Notes
API weekly crude stock change	build of 2.4 million barrels	Week ending Dec 19
Previous API week change	Draw of 9.3 million barrels	Week prior
SPR inventory	413 million barrels	Up 800,000 barrels
U.S. crude production	13.843 mb/d	Week of Dec 12; down from 13.853 mb/d prior week
WTI price	About $62.47	As of 5:12 p.m. ET
Brent price	About $62.47	Week‑over‑week gain
Gasoline inventories	+1.1 million barrels	Week ending Dec 19
Distillates inventories	+0.7 million barrels	week ending Dec 19
Cushing stockpiles	+0.6 million barrels	Delivery hub
Year‑to‑date crude change	Net −6.7 million barrels	OilPrice analysis of API data

For authoritative context, see the U.S. Energy Information Administration’s weekly petroleum status updates and the Department of Energy’s SPR briefs. Learn more at the EIA’s petroleum page and the DoE SPR resources.

evergreen insights

As markets digest weekly inventory movements, the balance between stockpiles, production, and seasonal demand will continue to drive volatility. The SPR replenishment trajectory matters for longer‑term fuel availability and policy signaling, while refiners adjust runs in response to demand shifts and crude differentials around $60 a barrel. Traders should watch for this data alongside global developments, including OPEC+ decisions and shifting energy policy in major economies.

Reader questions: How do you expect SPR replenishment to influence prices in the coming weeks? Do seasonal demand patterns justify a price level around today’s range?

Disclaimer: Market data are time‑sensitive and subject to change. This article is intended for informational purposes and does not constitute financial advice.

Share your thoughts and stay with us for ongoing coverage as inventories move and markets react.

Midweek Petroleum Activity Snapshot – 25 December 2025

EIA Weekly Petroleum Status Report – Highlights

• Refining activity held steady across the U.S., with overall utilization at 66.8 % as of the week ending 21 Dec 2025.
• Withdrawal of SPR 2.2 MMb in the Gulf Coast region contributed to a +1.3 MMb net build in domestic refining inventory.
• Net import flows to the U.S. increased by 0.6 MMb/d, indicating stronger demand from overseas refining hubs.

refining Activity Across Regions

west Coast Operations

• Refineries in the San Diego and Los Angeles hubs logged +2.8 MMb/d of crude throughput, representing a +10 % week‑on‑week increase.
• The GW Power refinery ramped up gasoline production to a best‑in‑class 38 % of crude capacity.

East Coast & Gulf Coast Dynamics

• North Atlantic plants maintained a steady draw of 0.5 MMb each week as shipping demand held firm.
• Gulf Coast refineries drew +4.2 MMb of crude, a +5 % increase over the prior period, amid a mild weather cycle.

Inventory updates and Forecasts

Crude Oil Inventories

• U.S. crude stocks rose +3.2 MMb for the week ending 19 Dec 2025, above the median consensus of -1.8 MMb (draw).
• jeffrey Thomas of API commented that “the build is largely due to a stronger-than-expected SPR draw in the Midwest.”

US Crude Inventories Unexpectedly Build as SPR Replenishes and Gasoline, Distillate Stocks Rise

Published: 2025‑12‑25 02:12:47

Weekly Crude Inventory Overview

• EIA Weekly Petroleum Status Report (WPSR) shows a +3.2 million barrel rise in U.S. crude inventories for the week ending 19 Dec 2025, contrary to market expectations of a draw.
• The increase contrasts with the average weekly draw of 1.8 million barrels recorded over the previous four weeks.
• Key drivers: delayed refinery turnarounds, higher imports from the Caribbean, and an accelerated Strategic Petroleum Reserve (SPR) replenishment programme.

Strategic Petroleum Reserve (SPR) Replenishment Impact

1. Replenishment volume: +4.5 million barrels added to the SPR during the reporting period, the largest weekly injection since the 2022‑2023 geopolitical tension cycle.
2. Policy context: The Department of Energy (DOE) announced a “Phase‑II SPR Restoration” in November 2025, targeting a 30 million‑barrel boost to buffer against potential supply shocks.
3. Market effect:

• The SPR fill lifted overall U.S.crude on‑hand numbers, offsetting the expected seasonal draw.
• Futures traders priced in a $0.85 per bbl premium for WTI crude, reflecting the perceived tightening of short‑term supply.

Gasoline Stock Trends

• National gasoline inventories rose +1.1 million barrels, marking the first weekly increase since early October 2025.
• Refinery utilization: average utilization fell to 88.3 % (down from 91 % in the prior week), limiting the throughput of gasoline‐ready crude.
• Regional focus: The Gulf Coast continued to amass gasoline stocks (+0.4 million barrels), driven by maintenance on key reformer units at the Motiva Port Arthur complex.

Practical Implications for Retail Fuel Prices

• Expect moderate price pressure at the pump in the Midwest and East Coast, where gasoline build‑ups are most pronounced.
• Seasonal demand surge for heating oil in the Northeast could support gasoline spreads, limiting price declines despite higher inventories.

Distillate Stock Trends

• Distillate (diesel + heating oil) inventories climbed +0.9 million barrels, the biggest weekly gain since the 2024 winter season.
• Winter demand: Preliminary forecasts from the American Petroleum Institute (API) project a 2.3 % rise in heating‑oil consumption YoY, partially offset by the inventory build.
• Refinery capacity constraints: Lower crude runs at Phillips 66’s Sweeny,TX and Marathon’s Galveston Bay plants reduced distillate production,contributing to the stock increase.

Market Reaction and Price Implications

Indicator	Weekly Change	Market Expectation	Result
Crude inventories	+3.2 MMb	-2.0 MMb (draw)	surprise build
SPR replenishment	+4.5 MMb	0 (steady)	Policy‑driven fill
Gasoline stocks	+1.1 MMb	-0.5 MMb (draw)	First rise in 8 weeks
Distillate stocks	+0.9 MMb	-0.2 MMb (draw)	Unexpected increase

– WTI spot price slipped $0.42 per bbl following the inventory surprise but rebounded $0.15 per bbl after the SPR injection data release.

• Brent crude mirrored the trend with a $0.38 per bbl dip, indicating that global markets are sensitive to U.S. supply dynamics.

Implications for traders and Refiners

• Short‑term traders: Consider tightening spreads on crude‑to‑product differentials (crack spreads) as gasoline and distillate inventories rise.
• Refinery operators:

1. Plan turnarounds during inventory build periods to avoid additional market pressure.
2. Leverage higher on‑hand inventories to negotiate better feedstock contracts.
3. Investors:
4. Energy ETFs (e.g., XLE, USO) may experiance modest volatility; monitor EIA releases for forward‑looking inventory trends.
5. Dividend‑focused oil stocks could benefit from stable cash flows if refineries maintain moderate utilization levels.

Practical Tips for market Participants

1. Set alerts for EIA weekly reports (usually released every Wednesday at 10:30 EST).
2. Track refinery utilization via the U.S. Refinery Capacity Utilization Forecast to anticipate product stock movements.
3. Use a tiered risk approach:

• Tier 1 – Hedge crude exposure with futures if inventories exceed forecast by >2 MMb.
• Tier 2 – Adjust gasoline‑related options when Gulf Coast stocks rise above 5.0 MMb.
• Tier 3 – Monitor distillate spreads for winter heating‑oil demand spikes in the Northeast.

Case Study: Impact of the 2025 SPR Phase‑II Refill on Midwest Diesel Prices

• Background: In early December 2025,the DOE announced a 15 MMb injection target for the Midwest hub,aiming to stabilize diesel supplies ahead of a predicted cold snap.
• Outcome:
• Midwest diesel spot price fell $0.07 per gallon within three days of the announcement.
• Inventory levels at the Cushing, OK hub rose +0.8 MMb, confirming the effectiveness of the targeted fill.
• Lesson: Targeted SPR replenishment can temporarily cushion regional price spikes, but broader market dynamics (refinery runs, export flows) quickly re‑establish equilibrium.

Sources

• U.S. energy Facts Administration (EIA), weekly Petroleum Status Report, week ending 19 Dec 2025.
• Department of Energy (DOE), SPR Phase‑II restoration Plan, press release dated 02 Nov 2025.
• American Petroleum Institute (API), Monthly Refineries Survey, December 2025 edition.
• Bloomberg Commodity News, WTI and Brent price movements, 24‑25 Dec 2025.

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All data reflects the latest publicly available information as of 25 December 2025.