U.S. crude stocks rise less than expected last week
U.S. crude stocks rose less than expected last week as refineries hiked output, while gasoline and distillate inventories fell, the Energy Information Administration said.
Crude inventories rose by 414,000 barrels in the last week, compared with analysts’ expectations for an increase of 2.5 million barrels.
Refinery crude runs rose by 190,000 barrels per day, EIA data showed. Refinery utilization rates rose by 1.4 percentage points.
Net U.S. crude imports fell last week by 1.03 million barrels per day.
“A solid tick higher in refining activity and a firm drop in net imports has resulted in minor build to crude stocks,” said Matt Smith, director of commodity research at ClipperData.
“This lesser build than expected, combined with draws to the products, is providing further encouragement for today’s rally.”
Oil prices extended gains after the data, with Brent crude up about 1% and U.S. crude futures gaining about 1.6% by 11:29 a.m. ET (1629 GMT).
Still, in the East Coast, refinery utilization rates dropped to the lowest level since November 2012, the data showed.
The gasoline-producing unit at Phillips 66’s Bayway Refinery in Linden, New Jersey, the largest on the East Coast, has been shut since early this month.
Gasoline stocks fell by about 2 million barrels, compared with analysts’ expectations in a Reuters poll for a 435,000-barrel gain.
Distillate stockpiles, which include diesel and heating oil, fell by 636,000 barrels, versus expectations for a 1.5 million-barrel drop, the EIA data showed.
“The refinery utilization rate is probably the most important number here. It looks like turnaround season is basically over, said Bob Yawger, director of energy futures at Mizuho in New York.
“That’s the number that managed to lower the crude oil build.”
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 133,000 barrels, EIA said. (Reporting by Devika Krishna Kumar and Laila Kearney in New York; Editing by David Gregorio)
Comments