By June 21, 2017 Read More →

US crude stocks, gasoline inventories fall: EIA

US crude stocks

US crude stocks and gasoline inventories fell last week.  Analysts say the increase in gasoline inventories in the week previous was likely due to inclement weather. 

US crude stocks down by 2.5 million barrels in week ending June 16

Data from the US Energy Information Administration showed US crude stocks and gasoline inventories fell last week, surprising analysts with a larger-than-anticipated draw.

Crude stocks fell 2.5 million barrels in the week ending June 16.  Analysts had expected inventories to fall by 2.1 million barrels due to a small increase in imports of 56,000 barrels per day (b/d).

According to the EIA, crude stocks at the Cushing, Oklahoma delivery hub for US crude futures fell by 1.09 million barrels.

Shortly after the data was released, oil prices rose slightly, however, they soon dipped and are now on track for the weakest first half of a year since 1997.

By 11:24 a.m. US crude futures were down 10 cents to $43.41/barrel and Brent crude was down 23 cents to 45.79/barrel.

Abhishek Kumar, senior energy analyst at Interfax Energy’s Global Gas Analytics said price gains that immediately followed the release of the EIA data were hard to sustain because there were no structural changes.

“U.S. crude and gasoline stockpiles are significantly higher compared with their five-year averages, which will weigh on prices,” Kumar told Reuters. “Meanwhile, oil output in the country is still rising despite recent declines in oil prices.”

US crude production has grown steadily in recent months and the EIA reports that last week, output was up by 20,000 b/d to 9.35 million b/d.

Gasoline stocks fell by 578,000 barrels, against analysts’ forecasts of a boost of 443,000 barrels.

“Gasoline demand rebounded smartly to more normal levels for this time year, giving credence to the view that some of the lackluster demand was weather-related,” John Kilduff, a partner at Again Capital Management told Reuters.

Distillate stocks, including diesel and heating oil rose 1.1 million barrels, versus expectations of a 465,000-barrel increase.

Refinery crude runs fell by 104,000 b/d on decreasing utilization rates that dropped by 0.4 per cent to 94 per cent of total capacity, according to the EIA.


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