U.S. commercial crude inventories, which trailed historic averages throughout 2022 amid growing demand, flipped to a surplus to start the new year. With consumption now falling and production relatively strong, stocks jumped by 19 million bbl in the first week of January.

That left stockpiles, excluding those in the Strategic Petroleum Reserve, at 439.6 million bbl – 1% above the five-year average, the Energy Information Administration (EIA) said Wednesday in its latest Weekly Petroleum Status Report.

Following holiday travel and amid increased recession worries, total petroleum demand fell 3% week/week for the period ended Jan. 6. That followed a 20% drop the prior week, as Americans pulled back on spending and economists increasingly warned that surging interest rates could...