EIA: U.S. crude stockpiles fall, fuel builds as refiners hike output
U.S. crude oil stockpiles fell last week as oil refiners ramped up production with the start of the summer driving season, while fuel inventories rose amid weaker demand, data from the U.S. Energy Information Administration (EIA) showed on Wednesday.
Crude inventories fell by 4.3 MMbbl to 436.1 MMbbl in the week ended May 30, the EIA said, compared with analysts' expectations in a Reuters poll for a 1-MMbbl draw.
Refinery crude runs rose by 670,000 bpd, the EIA said, while utilization rates jumped 3.2% to 93.4% of total capacity.
Gasoline stocks rose by 5.2 MMbbl in the week to 228.3 MMbbl, the EIA said, compared with expectations for a 600,000-bbl build.
Product supplied of gasoline, a proxy for demand, fell by 1.2 MMbpd to 8.3 MMbpd, despite the start of the summer driving season after the Memorial Day holiday weekend, typically a time of increased demand.
The lower demand number raised some concerns.
"There was a strong increase in refinery demand for crude, resulting in a large crude draw," said Giovanni Staunovo, an analyst with UBS. "But post-Memorial Day, the strong supply increase with weaker implied demand resulted in large refined product inventory increases."
Immediately following the data, U.S. crude prices pared gains and last traded near flat at $63.40 a barrel.
Distillate stockpiles, which include diesel and heating oil, rose by 4.2 MMbbl in the week to 107.6 MMbbl, versus expectations for a 1-MMbbl rise, the EIA data showed.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 576,000 bbl, the EIA said.
Net U.S. crude imports rose last week by 389,000 bpd.
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