U.S. crude, gasoline stockpiles fall on stronger demand
U.S. crude oil and gasoline inventories fell last week as demand picked up ahead of Labor Day weekend and the end of the summer driving season, the Energy Information Administration (EIA) said on Wednesday.
Crude stocks fell by 846,000 bbl to 425.2 MMbbl in the week ended Aug. 23, data showed, far less than analysts' expectations in a Reuters poll for a 2.3-MMbbl draw.
Stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures fell by 668,000 bbl in the week, the EIA said.
Global benchmark Brent and U.S. crude futures extended losses after the data showed the lower-than-expected draw. Refinery crude runs rose by 175,000 bpd and refinery utilization rates rose by 1% to 93.3% of total capacity.
Gasoline stocks fell by 2.2 MMbbl in the week to 218.4 MMbbl, their lowest since November. The draw was deeper than forecasts for a 1.6-MMbbl draw.
Gulf Coast gasoline stocks fell sharply to their lowest since March 2021, drawing down 2.8 MMbbl to 76.3 MMbbl. U.S. gasoline futures pared losses following the data.
"Despite apparent robust refinery runs, gasoline inventories drew amid stronger implied demand as we are in the last hurrah of summer driving season, and gas stations are likely stocking up ahead of the Labor Day weekend," said Matt Smith, energy analyst at Kpler, referring to the upcoming holiday weekend which marks the end of the peak summer driving season.
Gasoline supplied, a proxy for demand, rose on the week to 9.3 MMbpd, up from 9.2 MMbpd.
Distillate stockpiles, which include diesel and heating oil, rose by 300,000 bbl in the week to 123.1 MMbbl, versus expectations for a 1.1-MMbbl drop, the data showed.
U.S. heating oil futures extended their losses after the data.
Net U.S. crude imports rose last week by 282,000 bpd to 2.9 MMbpd and exports fell 374,000 bpd to 3.7 MMbpd, the EIA said.
"Ongoing strength in imports and a tick lower in exports helped keep the draw in check," Kpler's Smith said.
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