U.S. crude stocks fell more than expected last week even as refineries cut output, government data showed on Wednesday, but a build of 5 million barrels in combined inventories of gasoline and distillates raised questions about demand.
Crude inventoriesfell 4 million barrels in the last week, data from the Energy Information Administration showed. Analysts had expected a decrease of just 2.8 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hubfell 1.5 million barrels, EIA said.
The weekly refinery utilization rate held steady at 93.8 percent, EIA data showed.
U.S. gasoline demand over the past four weeks fell 1 percent to 9 million barrels.
"Refiners are still refining oil like crazy, especially in the Midwest," said Phil Flynn, analyst at the Price Futures Group in Chicago. "What seems to be taking away a little of the bullish momentum is that we saw a build in gasoline supply and distillate."
Refinery crude runsfell by 28,000 barrels per day, EIA data showed.
Gasoline stocksrose by 3.4 million barrels, compared with analysts' expectations in a Reuters poll for a 1.3-million-barrel gain.
Distillate stockpiles, which include diesel and heating oil, rose by 1.64 million barrels, versus expectations for a 2.1-million-barrel increase, the EIA data showed.
U.S. cruderose after the data, and was up 82 cents a barrel at $103.21 by 11:30 a.m. EDT (1530 GMT).
"The crude draw bought a little buying, but when you keep utilization up at these high levels, you keep piling fuel into the storage tanks and that’s not a strong sign for demand," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
Source: Reuters
Crude inventories
Crude stocks at the Cushing, Oklahoma, delivery hub
The weekly refinery utilization rate held steady at 93.8 percent, EIA data showed.
U.S. gasoline demand over the past four weeks fell 1 percent to 9 million barrels.
"Refiners are still refining oil like crazy, especially in the Midwest," said Phil Flynn, analyst at the Price Futures Group in Chicago. "What seems to be taking away a little of the bullish momentum is that we saw a build in gasoline supply and distillate."
Refinery crude runs
Gasoline stocks
Distillate stockpiles
U.S. crude
"The crude draw bought a little buying, but when you keep utilization up at these high levels, you keep piling fuel into the storage tanks and that’s not a strong sign for demand," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
