EIA: Larger-than-expected US crude draw alongside gasoline and distillate builds

US crude inventories declined last week, while gasoline and distillate stockpiles posted larger-than-expected builds as refinery activity increased, data from the Energy Information Administration (EIA) showed on Wednesday 17 December.

Commercial crude stocks fell by 1.3 million barrels to 424.4 million barrels in the week ended 12 December, exceeding analysts’ expectations for a 1.1 million-barrel draw. The figure, however, stood in sharp contrast to data released a day earlier by the American Petroleum Institute, which reported a much steeper 9.3 million-barrel decline in crude inventories.

Market reaction to the EIA report was mixed, as the modest crude draw was offset by substantial builds in refined products, lending the data an overall bearish tone. Refinery crude runs increased by 128,000 barrels per day during the week, while utilization rates edged up 0.3% to 94.8%, reflecting strong operational activity.

US gasoline inventories rose by 4.8 million barrels to 225.6 million barrels, well above expectations for a 2.1 million-barrel increase. Distillate stocks, which include diesel and heating oil, climbed by 1.7 million barrels to 118.5 million barrels, also exceeding forecasts for a 1.2 million-barrel build.

Demand indicators weakened, with total product supplied, a proxy for consumption, falling by 509,000 bpd to 20.57 million bpd. On the trade front, net US crude imports declined by 719,000 bpd, while crude exports increased by 655,000 bpd to 4.66 million bpd.

Oil futures pared earlier gains following the larger-than-expected rise in fuel inventories, though prices continued to trade modestly higher, reflecting ongoing uncertainty over near-term supply and demand balances.

Written by: Farid Muzaffar