US crude stockpiles fall, gasoline builds as refiners boost output
(Reuters) US crude oil stockpiles fell sharply last week and gasoline inventories posted an unseasonably surprise large build as refineries ramped up production, the US Energy Department said on Wednesday.
Crude inventories fell 4.1 MMbbl in the week to June 24, the sixth consecutive week of drawdowns and bigger than the 2.4 MMbbl drop forecast by analysts and the 3.9 MMbbl fall reported by industry group the American Petroleum Institute late Tuesday.
Crude stocks at the Cushing, Oklahoma delivery hub for US crude futures fell 951 Mbbl and imports fell 993 Mbpd, the US Energy Information Administration said.
Gasoline stocks rose 1.4 MMbbl, compared with analysts' expectations in a Reuters poll for a 58 Mbbl gain. On the East Coast, gasoline stockpiles rose to record levels.
"The draw in crude inventories was bigger-than-expected but was so the build in gasoline, resulting in a mixed picture on the fundamental front," said Tariq Zahir, crude spreads trader and managing partner at Tyche Capital Advisors in New York.
Crude prices have a tailwind as equity markets recover from a shock late last week, he said. "Even so, we firmly feel any rally will stall out near the $50 level, as we have seen unjustified gains in previous weeks for gasoline based on the build number we have now."
Crude oil futures extended gains after the data was released. By 10:55 a.m., US crude was up $1.26, or 2.6%, at $49.11 per barrel and Brent rose $1.05, or 2.2%, to $49.63 per barrel.
Refinery crude runs rose 190 Mbpd as utilization rates rose 1.7% to 93% of total refining capacity, EIA data showed.
Distillate stockpiles, which include diesel and heating oil, fell by 1.8 MMbbl, versus expectations for a paltry 14 Mbbl rise, the EIA said.
US gasoline traded at a rare discount to distillate futures for a second time in June, after the EIA data was released.
Reporting By David Gaffen and Jessica Resnick-Ault; additional reporting by Barani Krishnan in New York; Editing by Marguerita Choy
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