WASHINGTON — U.S. crude oil inventories rose unexpectedly last week as refinery processing eased and imports climbed, according to data released Wednesday by the Energy Information Administration (EIA).

Crude stocks increased by 2.5 million barrels to 407 million barrels in the week ended July 31. The build came as a surprise to analysts, who had expected a drawdown of approximately 1.5 million barrels. The previous week had seen a decline of 716,700 barrels.

Refinery Activity Slows

Refinery crude runs fell by 183,000 barrels per day, while refinery utilization rates dropped by 0.7 percentage points to 96.5%. The previous week’s utilization rate stood at 97.2%. Analysts had forecast a smaller decline to 96.7%.

Strategic Petroleum Reserve

The Strategic Petroleum Reserve (SPR) declined by 2.841 million barrels to 304.809 million barrels. The broader U.S. government’s strategic reserves eased to 711.8 million barrels.

Product Stocks Mixed

Gasoline inventories fell by 1.643 million barrels, exceeding analyst expectations of a 1.45 million-barrel drawdown. Distillate fuel stocks also posted a decline.

Market Context

The inventory build comes amid persistently high refining margins, which have remained at record levels even as crude oil prices have surged above $100 per barrel. Global supplies of gasoline, diesel and jet fuel have been tightening for months, largely due to disruptions from the conflicts in Iran and Ukraine.

Crude oil prices fell for a third consecutive trading day on Wednesday as markets reassessed supply premiums.