U.S. crude stockpiles drop, product supplies higher

U.S. crude stocks fell while gasoline and distillate inventories rose, the Energy Information Administration said, in a report largely in line with analyst expectations.

Crude inventories fell by 1.1 million barrels in the week to Dec. 13 to 446.8 million barrels, compared with analysts’ expectations in a Reuters poll for a 1.3 million-barrel drop.

Oil prices rose as the report contradicted Tuesday’s data from industry group the American Petroleum Institute, which showed an increase in crude inventories.

“The market reaction was abruptly stronger due to the fact that we were so far away from industry estimations in the way of a net build,” said Tony Headrick, an energy markets analyst at CHS Hedging.

Refinery crude runs fell by 35,000 barrels in the last week, EIA data showed. Refinery utilization rates were unchanged.

U.S. crude pared losses, and was down 12 cents to $60.82 a barrel as of 10:43 a.m. ET (1543 GMT). Brent dipped 3 cents to $66.07, also off earlier lows.

U.S. gasoline stocks rose by 2.5 million barrels in the week to 237.3 million barrels, the highest since March, the EIA said, compared with analysts’ expectations in a Reuters poll for a 2.2 million-barrel rise.​

Distillate stockpiles, which include diesel and heating oil, rose by 1.5 million barrels in the week to 125.1 million barrels, versus expectations for a 312,000-barrel rise, the EIA data showed.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 265,000 barrels in the last week, EIA said. (Reporting By David Gaffen and Laura Sanicola; Editing by David Gregorio)