U.S. crude stocks, gasoline and distillate inventories all fell by more than expected in the week ending August 16 as demand and exports rose, the Energy Information Administration (EIA) said on Wednesday.
Crude inventories fell by 4.6 million barrels to 426 million barrels in the week ended August 16, the EIA said, compared with analysts’ expectations in a Reuters poll for a 2.7 million-barrel draw.
Oil prices rose to session highs following the larger-than-anticipated decline in inventories, but eased shortly after on weaker U.S. economic data.
Brent futures were up about 5 cents to $77.22 a barrel at 11:05 a.m. EDT (1505 GMT), while U.S. futures were at $73.09 a barrel, down roughly 7 cents.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 560,000 barrels.
Net U.S. crude imports rose last week by 78,000 barrels per day, while exports rose by 289,000 bpd to 4.05 million bpd, EIA said.
“A tick higher in both refinery runs and exports has encouraged a draw to crude inventories, while buoyant implied demand for gasoline and distillates has helped to round out a trio of draws as we fast approach the finale of summer driving season,” said Matt Smith, an analyst for ship tracking firm Kpler.
Refinery crude runs rose by 222,000 barrels per day in the week ended August 16, and utilization rates rose by 0.8 percentage points in the week to 92.3 per cent, the EIA said.
U.S. gasoline stocks fell by 1.6 million barrels in the week to 220.6 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 933,000 barrel draw.
Product supplied for gasoline, a proxy for demand, was up 148,000 bpd week-over-week to 9.19 million bpd.
Gasoline stocks on the U.S. Gulf Coast are now at their lowest seasonal level since 2019.
Distillate stockpiles, which include diesel and heating oil, fell by 3.3 million barrels in the week to 122.8 million barrels, versus expectations for a 215,000 barrel drop, the EIA data showed.
Both U.S. gasoline and heating oil futures were up following bigger than expected draws in stockpiles. Gasoline futures turned negative along with U.S. crude in the hour following the report.