Crude stocks rise, fuel inventories drop -EIA
U.S. crude stocks rose last week, but gasoline and distillate inventories fell much more than anticipated, Energy Information Administration data showed on Wednesday.
Crude inventories rose by 856,000 barrels in the week to Oct. 20, compared with analysts’ expectations for an decrease of 2.6 million barrels, as imports increased and production rebounded from interruptions due to Hurricane Nate.
“The build in crude stocks was more than overshadowed by draws in excess of 5 million barrels for both gasoline and distillates,” said Troy Vincent, oil analyst at ClipperData in Louisville, Kentucky.
Gasoline stocks fell by 5.5 million barrels, compared with expectations in a Reuters poll for a drop of 17,000 barrels.
Distillate stockpiles, which include diesel and heating oil, fell by 5.2 million barrels, versus expectations for an 860,000-barrel drop, the EIA data showed. Drawdowns were acute on the East Coast, where distillate stockpiles fell to 45.3 million barrels, lowest since June of 2015, ahead of an anticipated rise in heating oil demand as winter approaches.
Crude prices fell after the data, but gasoline and heating oil futures contracts rallied on the drawdown in inventories and as refining output rose.
RBOB gasoline futures rose 1.2 percent to $1.7359 a gallon, while heating oil, a proxy for diesel and jet fuel, gained 0.6 percent to $1.8332 a gallon.
U.S. crude was down 0.5 percent to $52.22 a barrel.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 237,000 barrels, EIA said.
U.S. production rebounded after a week when Hurricane Nate shut in most offshore production
Refinery crude runs rose by 586,000 barrels per day, EIA data showed. Refinery utilization rates rose by 3.3 percentage points.
U.S. crude imports rose last week by 514,000 barrels per day.
Source: Reuters (Additional reporting by Scott DiSavino; Editing by David Gregorio)