U.S. crude oil stockpiles fell as refiners increased production, while fuel inventories rose unexpectedly last week, the Energy Information Administration (EIA) said on Wednesday.
Crude inventories fell by 1.4 million barrels to 459.5 million barrels in the week ending May 3, according to the EIA, slightly more than analysts’ expectations in a Reuters poll for a 1.1 million-barrel draw.
The draw came as refinery crude runs rose by 307,000 barrels per day, and refinery utilization rates rose by 1 percentage point to 88.5 per cent of total capacity. That, however, was down from 91 per cent utilization a year ago.
Gasoline stocks rose by over 900,000 barrels in the week to 228 million barrels, the EIA said, compared with forecasts for a 1.3 million-barrel draw.
Distillate stockpiles, which include diesel and heating oil, rose by 600,000 barrels in the week to 116.4 million barrels, versus expectations for a 1.1 million-barrel drop, the EIA data showed.
“More distressing, if you’re a refiner, is that gasoline inventories built. They are approximately 4 per cent higher than this time last year,” said Andy Lipow of Lipow Oil Associates in Houston, Texas.
The market has been closely watching gasoline supply and demand ahead of the summer driving season, when consumption is expected to increase. Both U.S. gasoline and distillate futures fell after the report.
“The gasoline situation was going to be looked at by everybody and it definitely disappointed,” said Bob Yawger, director of energy at Mizuho.
“Gasoline demand is still below 9 million barrels (per day) ahead of the start of the summer driving season. That is a pretty grim situation here,” he added.
Crude oil prices pared losses following the report, with U.S. futures up slightly on the day at $78.38 a barrel.
Net U.S. crude imports fell last week by 353,000 bpd, while exports rose by 550,000 bpd to 4.5 million bpd, the EIA said.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.9 million barrels, the EIA said.