By October 26, 2016 Read More →

US crude stocks, gasoline and distillate inventories fell last week

US crude stocks

Analysts expected US crude stocks to increase by 1.7 million barrels last week. Reuters photo by Richard Carson.

US crude stocks down by 553,000 barrels

NEW YORK, Oct 26 (Reuters) – US crude stocks fell unexpectedly last week, and gasoline and distillate inventories decreased more than expected, the Energy Information Administration said on Wednesday.

Crude inventories fell by 553,000 barrels in the last week, compared with analysts’ expectations for an increase of 1.7 million barrels.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.3 million barrels, EIA said.

WTI crude futures for December delivery were last down 21 cents to $49.75 a barrel, or 0.4 per cent, after earlier hitting a session low of $48.87. Brent crude futures for December delivery were down 40 cents to $50.39 a barrel, a 0.8 per cent loss.

“It was a supportive report with across-the-board inventory declines, fairly large in gasoline and distillates,” said John Kilduff, partner at New York energy hedge fund Again Capital. “Crude oil import volumes remain restrained, with a much smaller-than-expected rebound from the previous week’s low levels,” he said.

U.S. crude imports rose last week by 133,000 barrels per day.

Refinery crude runs rose by 182,000 barrels per day, EIA data showed. Refinery utilization rates rose by 0.6 percentage points.

Gasoline stocks fell by 2 million barrels, compared with analysts’ expectations in a Reuters poll for a 1-million-barrel drop.

Distillate stockpiles, which include diesel and heating oil, fell by 3.4 million barrels, versus expectations for a 1.4 million-barrel drop, the EIA data showed. On the Gulf Coast, distillate stocks fell to their lowest seasonal levels since October 2014.

“Although the draw gives the data a definite bullish tilt, looking deeper into the numbers, we see a rise in U.S. production that’s evidence of rigs coming online in the last few months,” said Tariq Zahir, trader in crude oil spreads at Tyche Capital Advisors in New York.

“Spot crude has had a hard time gaining any traction above the $50 level to the upside even though we have see quite a few draws in the last few weeks,” he said. Rather, the focus remains on geopolitics and the results of upcoming OPEC negotiations.

(Reporting By Jessica Resnick-Ault; Editing by Meredith Mazzilli)

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