US crude inventories fall unexpectedly for third week
(Reuters) - US crude oil inventories fell sharply last week, the third consecutive week of unexpected declines, while gasoline stocks decreased nationwide but posted record builds on the Gulf Coast amid the shutdown of a key pipeline, data from the US Energy Information Administration showed on Wednesday.
Crude inventories fell 6.2 MMbbl in the week to September 16, compared with expectations in a Reuters poll for an increase of 3.4 MMbbl.
It marked the third straight week of draws, surprising traders who expected a rebound after a 14.5 MMbbl draw in the week to September 2, the biggest weekly drawdown since 1999.
US crude imports rose last week 77 Mbpd.
Imports to the US Gulf, however, dropped sharply to 2.9 MMbpd from 3.4 MMbpd the previous week, close to record low rate of 2.5 MMbpd hit in the week to September 2 when a Tropical Storm Hermine disrupted supplies.
Gasoline stocks fell 3.2 MMbbl nationwide, compared with analysts' expectations for a 567 Mbbl.
Gulf Coast gasoline inventories, however, rose 4.8 MMbbl last week, a record weekly build, to the highest level ever for this time of year at 83.7 MMbbl, the EIA said, amid the shutdown of the 1.3 MMbpd Colonial pipeline that runs from the Gulf to the East Coast.
Meanwhile, East Coast stocks posted their largest-ever weekly decline of 8.5 MMbbl, slumping to the lowest level since December, 2014 at 55.5 MMbbl.
"The Colonial pipeline mess is evident in the gasoline data, which showed supplies stranded in the Gulf and drawn down in the East. We will have to see if the trends normalize next week," said John Kilduff, partner at New York energy hedge fund Again Capital in New York.
Refinery crude runs fell 143 Mbpd as utilization rates fell 0.9% to 92% of total capacity, EIA data showed.
Distillate stockpiles, which include diesel and heating oil, rose by 2.2 MMbbl, versus expectations for a 250 Mbbl increase, the EIA data showed.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 526 Mbbl, EIA said.
Reporting By David Gaffen; Additional reporting by Jarrett Renshaw and Barani Krishnan; Editing by Marguerita Choy
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