Domestic crude oil inventories increased by more than 20 million bbl last week, the U.S. Energy Information Administration (EIA) said Wednesday, as demand leveled off, production rose and Gulf Coast refinery utilization rates nosedived.

In its Weekly Petroleum Status Report (WPSR), EIA said overall demand in the week ended Feb. 26 ticked up 0.4% week/week but was off 12% when compared with a year earlier. The year/year drop was driven in part by a 17% decline in propane and propylene consumption as temperatures warmed during the covered week as well as an 11% dip in gasoline demand.

The biggest driver, however, was the 25% year/year decline in jet fuel consumption, EIA said. With travel light amid the ongoing coronavirus pandemic, fuels used for air travel have for more months...