U.S. crude stockpiles drop, fuel stocks rise: EIA
1/14/2021 9:19:45 AM

U.S. crude stocks fell more than expected in the last week, while gasoline and distillate inventories rose as refiners ramped up output to its highest level since August, the Energy Information Administration said on Wednesday.

Crude inventories fell by 3.2 million barrels in the week to Jan. 8 to 482.2 million barrels, compared with expectations in a Reuters poll for a 2.3 million-barrel drop.

Refinery crude runs rose by 274,000 barrels per day in the last week, EIA said. Refinery utilization rates rose by 1.3 percentage points, in the week, boosting overall refining use to 82% of capacity, highest since August.

“I think what we’re seeing here is the drawdown in supply and a big uptick in refinery runs is giving the market an idea that refiners are starting to ramp up production of products,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Prices dipped initially on the report before rebounding to near-unchanged. As of 10:43 a.m. EST (1543 GMT), U.S. futures rose 5 cents to $53.26 a barrel while Brent crude slipped 14 cents to $56.44 a barrel.

U.S. gasoline stocks rose by 4.4 million barrels in the week to 245.5 million barrels, compared with expectations for a 2.7 million-barrel rise.