Oil

U.S. crude stockpiles rise, gasoline draws down - EIA

Credit: REUTERS/DRONE BASE

U.S. crude oil stockpiles rose, while gasoline inventories fell, in a signal of steady demand for fuel, the Energy Information Administration said on Wednesday.

Adds details, price reaction, analyst comment

Aug 4 (Reuters) - U.S. crude oil stockpiles rose, while gasoline inventories fell, in a signal of steady demand for fuel, the Energy Information Administration said on Wednesday.

Crude inventories USOILC=ECI rose by 3.6 million barrels in the week to July 30 to 439.2 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop.

Stocks at the Cushing, Oklahoma, delivery hub USOICC=ECI for U.S. crude futures, however, fell for an eighth straight week, dropping by 543,000 barrels to 34.9 million barrels, their lowest since January 2020, the EIA said.

Gasoline stocks USOILG=ECI fell by 5.3 million barrels, the EIA said, far more than expectations for a 1.8 million-barrel drop.​

Overall product supplied remained high, which analysts suggested was for now a signal that U.S. demand for fuel was weathering the increase in coronavirus infections.

Overall product supplied by refiners, a proxy for demand, rose to 20.5 million barrels per day over the last four weeks, which is comparable to pre-pandemic levels.

"Despite concern about the (coronavirus) Delta variant, we are not seeing it impacting U.S. product demand in a large way. I think overall that can be viewed as supportive," said Tony Headrick, energy market analyst at CHS Hedging.

Analysts said they would watch to see if refining activity or fuel demand is affected by the increased infection rate both in the United States and worldwide.

Oil prices briefly dipped after the news, but recovered to pre-report levels, though still down on the day. U.S. crude CLc1 fell $1.47 a barrel, or 2.1%, to $69.09 a barrel as of 10:52 a.m. EDT (1452 GMT), and Brent LCOc1 lost 1.6% to $71.22 a barrel.

Refinery crude runs USOICR=ECI rose by 45,000 bpd in the last week, the EIA said. Refinery utilization rates USOIRU=ECIinched up by 0.2 percentage point.

Distillate stockpiles USOILD=ECI, which include diesel and heating oil, rose by 833,000 barrels, versus expectations for a 543,000-barrel drop.

Net U.S. crude imports USOICI=ECI rose last week by 510,000 bpd.

(Reporting By David Gaffen and Laura Sanicola Editing by Marguerita Choy)

((david.gaffen@thomsonreuters.com; +1-646-223-6064; Reuters Messaging: david.gaffen.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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