By July 6, 2017 Read More →

US gasoline, crude stocks drop, prompting rise in oil prices: EIA

crude stocks

US crude stocks at the Cushing, Oklahoma delivery hub were down by 1.3 million barrels last week, according to data from the US Energy Information Adminstration. Reuters file photo by Nick Oxford.

US crude stocks down 6.3 million barrels

Data from the US Energy Information Administration showed US crude stocks fell to their lowest levels since January and at the same time, refining activity increased and oil imports fell.  As well, gasoline inventories fell sharply ahead of the Fourth of July holiday weekend.

Crude inventories were down by 6.3 million barrels in the week ending June 30, much higher than analysts’ expectations of a drop of 2.3 million barrels.  US crude stocks now sit at 502.9 million barrels.

US crude imports fell 514,000 barrels per day (b/d) last week and refinery crude runs were up by 251,000 b/d.  Refining utilization rates rose 1.1 per cent to 93.6 per cent of nationwide capacity.

EIA data showed crude stocks at the Cushing, Oklahoma delivery hub for US crude futures dropped 1.3 million barrels.

Following the release of the data, US WTI prices rose over 2 per cent to $46.17 and Brent futures rose to $48.82 by 11:22 a.m. EDT.

Gasoline stocks were down 3.7 million barrels against analysts’ expectations of a 1.1 million barrel decline.

Gasoline inventories are still 6  per cent higher than the five-year average and demand is down 1.8 per cent compared to this time last year.

“Gasoline demand continues to be down versus last year, taking away some of the bullish aspects of the report. With the Fourth of July holiday behind us, demand will remain lackluster,” John Kilduff, partner at Again Capital LLC in New York told Reuters.

Refinery crude runs increased by 251,000 barrels per day, EIA data showed.

Distillate stocks, including diesel and heating oil dropped 1.9 million barrels, higher than expectations of a 217,000-barrel increase.

The EIA reported crude production rose after rebounding from Tropical Storm Cindy that reduced output from some Gulf of Mexico producers.

Overall production rose by 88,000 b/d to 9.34 million b/d last week.

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