EIA: U.S. crude stocks fall on higher demand, fuel inventories rise
- Crude inventories fell by 3.4 MMbbl, exceeding expectations
- S. crude exports rose by 1.34 MMbpd, imports fell by 614,000 bpd
- Gasoline stocks rose by 2.3 MMbbl, distillate stocks up by 200,000 bbl
U.S. crude stocks fell as refining and export demand rose, while gasoline and distillate inventories rose last week, the Energy Information Administration (EIA) said on Wednesday.
Crude inventories fell by 3.4 MMbbl to 424.2 MMbbl in the week ended November 14, the EIA said, compared with analysts' expectations in a poll for a 603,000-bbl draw.
Crude stocks at the Cushing, Oklahoma, delivery hub dropped by 698,000 bbl in the week, the EIA said.
U.S. crude exports rose by 1.34 MMbpd to 4.16 MMbpd, and net U.S. crude imports fell last week by 614,000 MMbpd, EIA said.
Oil futures pared some losses following the larger-than-expected draw. Global Brent futures were trading at $63.42 a barrel, down $1.47 at 10:38 a.m. EDT (1538 GMT), while U.S. West Texas Intermediate futures were trading at $59.24 a barrel, down $1.49.
"A solid rebound in both refinery runs and crude exports encouraged a draw to U.S. crude inventories," said Matt Smith, an analyst for ship-tracking firm Kpler. "Cushing inventories dropped for a second week, moving closer to historical lows once more," he added.
Refinery runs up. Refinery crude runs rose by 259,000 bpd, the EIA said, while utilization rates increased by 0.6% in the week to 90%.
"It was a supportive report. The refinery run rate rebounded rapidly, generating the crude drawdown. The refinery run rate getting back to that level so quickly was a surprise to the market. We had been deep in refinery maintenance," said John Kilduff, partner at Again Capital.
Total product supplied, a proxy for demand, fell by 613,000 bpd to 20.16 MMbpd. Gasoline demand slipped 500,000 bpd to 8.53 MMbpd, while distillate demand fell 136,000 bpd to 3.88 MMbpd.
U.S. gasoline stocks rose by 2.3 MMbbl in the week to 207.4 MMbbl, the EIA said, compared with analysts' expectations in a poll for a 200,000-bbl draw.
Distillate stockpiles, which include diesel and heating oil, rose by 200,000 bbl in the week to 111.1 MMbbl, versus expectations for a 1.2-MMbbl drop, the EIA data showed.
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