EIA: U.S. crude inventories rise, gasoline and distillate inventories fall
- Crude inventories rose 3 million barrels to 411.4 million barrels last week
- S. crude oil exports declined by 746,000 barrels to 3.3 million barrels per day
- Gasoline stocks fell 1.9 million barrels to 212.1 million barrels last week
U.S. crude stocks rose last week as exports soften, while gasoline and distillate inventories fell last week ahead of the Independence Day weekend, the Energy Information Administration said on Wednesday.
Crude inventories rose by 3 million barrels to 411.4 million barrels in the week ending July 3, the EIA said, compared with analysts' expectations in a poll for a 2.4 million-barrel draw.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 52,000 barrels last week, the EIA said.
"A slower pace of crude exports and another slug of SPR barrels into commercial inventories encouraged a crude inventory build after ten consecutive draws," Matt Smith, director of commodity research said in a note. "Lower exports are no surprise; it is typical to see US crude exports lowest in the first week of the month."
Oil futures held gains after a surprise build in crude stocks, with Brent crude futures LCOc1 at around $79.57 a barrel, up $5.41 or 7.3%, at 10:40 (1440 GMT) and U.S. West Texas Intermediate crude CLc1 at $75.4 a barrel, up $4.96 or 7.04%.
Refinery crude runs fell by 172,000 barrels per day last week, the EIA said.
Refinery utilization rates fell by 0.8% in the week
U.S. gasoline stocks fell by 1.9 million barrels in the week to 212.1 million barrels, the EIA said, compared with analysts' expectations in a poll for a 1.6 million-barrel draw.
"Implied demand ahead of the 4th of July holiday has led to product draws, with a very strong pop in distillate implied demand driving a chunky draw," Smith said.
U.S. gasoline futures RBc1 extended gains and were up 4.97% after the data showed slightly larger-than-expected draw in U.S. gasoline stocks. The U.S. national gasoline price at the pump was around $3.80 a gallon on Wednesday, according to the AAA.
Distillate stockpiles, which include diesel and heating oil, fell by 5 million barrels in the week to 103.6 million barrels, versus expectations for a 0.6 million-barrel rise, the EIA data showed.
U.S. diesel futures HOc1 also extended gains and were up around 9.63% after the data showed the surprise draw in distillate stocks.
"With higher refining margins and refined product exports, along with increased attention to higher gasoline prices ahead of the election, I think this report elevates the risk of potential refined product export bans, tariffs, or limitations," said Josh Young, chief investment officer at Bison Interests.
Net U.S. crude imports rose by 1.1 million barrels per day, EIA said, while U.S. crude oil exports declined by 746,000 barrels to 3.3 million barrels per day.
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