By Liz Moyer
Investing.com -- U.S. crude oil inventories declined by more than expected last week, according to the Energy Information Administration.
Crude oil inventories dropped by 1.356 million barrels against expectations for a build of 2.052 million barrels.
Distillate stocks dropped by 3.443 million barrels. The expectation had been for a draw of 1.367 million barrels.
Gasoline inventories dropped by 4.728 million barrels against expectations for a draw of 1.334 million barrels.
Investing.com analyst Barani Krishnan attributed the drawdowns to consumer demand amid the plunge in crude and fuel prices over the past quarter.
“The consumer response to the relatively-low pump prices of fuel over the past two months cannot be understated, and that’s why you’re seeing demand at these levels even at this time of year,” Krishnan said, referring to the weekly retail demand for gasoline that shot up to nearly 9.5 million barrels per day from the previous week’s 8.,8 million bpd.
“Typically, Americans drive less at this time of year but you’re probably having people making trips to the pump to fill up even with gas still in their tank, as there are concerns that fuel prices have started going up again in some places,” Krishnan added.
Gasoline at pumps across America averaged $3.831 per gallon on Wednesday, up from last week’s level of $3.765, according to the American Automobile Association.