U.S. gasoline inventories fell to their lowest levels in two years as fuel supplies drew down unexpectedly last week amid strong demand, while crude oil stockpiles rose by more than expected, the Energy Information Administration (EIA) said on Thursday.
Gasoline stocks fell 4.4 million barrels in the week to Nov. 8 to 206.9 million barrels, their lowest since November 2022, compared with analysts’ expectations in a Reuters poll for a 600,000-barrel build.
East Coast gasoline inventories slipped to their lowest since April 2023, and in the Midwest to their lowest since last November.
Distillate stockpiles, which include diesel and heating oil, fell by 1.4 million barrels in the week to 114.4 million barrels, versus expectations for a 200,000-barrel rise, the EIA data showed.
Total products supplied, a proxy for demand, jumped to 21.6 million barrels per day (bpd) in the week, up from 19.7 million bpd. The four-week average for demand is about 1.7 per cent above last year’s levels.
Gasoline demand, meanwhile, gained 6 per cent in the week to 9.4 million bpd, while distillates demand jumped 17 per cent to 4.1 million bpd.
“Product supplies are very tight. That big draw in gasoline is definitely raising some eyebrows,” said Phil Flynn, an analyst with Price Futures Group.
U.S. gasoline futures spiked after the surprise draw, while U.S. heating oil futures briefly climbed after the data was released.
Brent and U.S. crude futures edged higher after the data showed the surprise fuel stocks draw.
“It’s very bullish on gasoline, and looks bullish for the crack spreads,” Flynn said.
Crude inventories rose by 2.1 million barrels to 429.7 million barrels, more than analysts’ expectations for a 750,000-barrel rise.
Stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures fell by 688,000 barrels.
Net U.S. crude imports fell by 321,000 bpd to 3.1 million barrels, as exports rose by 590,000 bpd to 3.4 million bpd.
Refinery crude runs rose by 175,000 bpd and refinery utilization rates rose by 0.9 percentage point to 91.4 per cent of total capacity.