EIA: U.S. crude, fuel inventories fall on robust refining and demand
- Crude stocks fall 961,000 bbl, versus forecasts for a build
- Refinery crude runs rise by 600,000 bpd, utilization at 88.6%
- East Coast refinery utilization highest since January 2023
U.S. crude oil, gasoline and distillate inventories fell last week as refining activity and demand strengthened, the U.S. Energy Information Administration (EIA) said on Wednesday.
Crude inventories fell by 961,000 bbl to 422.8 MMbbl in the week ended October 17, the EIA said, compared with analysts' expectations in a poll for a 1.2-MMbbl rise.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 770,000 bbl in the week, the EIA said.
Oil futures fell following the report but remained in positive territory. Global benchmark Brent crude futures were trading $1.31 higher on the day at $62.63 a barrel by 10:59 a.m. EDT (1459 GMT), while U.S. West Texas Intermediate (WTI) futures were up $1.38 at $58.62 a barrel.
"Higher demand from refineries helped to have a crude draw, while rebounding implied oil demand saw another set of product draws," said Giovanni Staunovo, an analyst with UBS.
Refinery crude runs rose by 600,000 bpd, the EIA said, and utilization rates rose by 2.9% in the week to 88.6% of total capacity. Utilization rates on the U.S. East Coast edged up to 93.7%, the highest rate since January 2023, according to the EIA.
Gasoline stocks fell by 2.1 MMbbl in the week to 216.7 MMbbl, the EIA said, compared with expectations for an 809,000-bbl draw.
Distillate stockpiles, which include diesel and heating oil, fell by 1.5 MMbbl in the week to 115.6 MMbbl, versus forecasts for a 1.9-MMbbl drop, the data showed.
Total product supplied, a proxy for demand, rose by 288,000 bpd to 20.01 MMbpd. Total product demand over the past four weeks was at 20.47 MMbpd, down 0.1% from year-ago levels.
"We have got total oil demand above 20 MMbpd. Very impressive for shoulder season. It shows the demand side of equation of oil is robust," said Phil Flynn, a senior analyst with Price Futures Group.
Net U.S. crude imports rose last week by 656,000 bpd, the EIA said. Exports declined by 263,000 bpd to 4.2 MMbpd.
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