Investing.com - U.S. crude inventories fell by just a third of expected levels last week despite an end to drawdowns from the national oil reserve, government data showed Wednesday.
Changes to fuel inventories were also underwhelming, the Weekly Petroleum Status Report from the Energy Information Administration, or EIA, showed. Gasoline balances also dropped less than forecast, although distillates saw a smaller-than-expected build that suggested better demand in that aspect.
The U.S. crude inventory balance fell by 0.708M barrels during the week ended July 14, versus the 2.44M-barrel decline forecast by industry analysts tracked by Investing.com. In the prior week to July 7, crude stockpiles surged by 5.946M barrels, the most in a month.
The crude draw reported by the EIA did not come with its usual caveat — release of crude from the U.S. Strategic Petroleum Reserve. For months now, weekly drawdowns from the reserve had been a point of contention for oil bulls, who said the additional oil had often suppressed crude prices from rallying.
On the gasoline inventory side, the EIA reported a draw of 1.066M barrels for last week. Analysts had expected the agency to cite a decline of 1.577M barrels instead, after near unchanged levels in the prior week. Automotive fuel gasoline is the No. 1 U.S. fuel product.
Finished motor gasoline products delivered to the marketplace — an indication of demand at the pump — stood at an underwhelming 8.855M barrels versus the prior week’s 8.756M. Typically, at this time of year, some 9M barrels of gasoline or more are supplied to the market each week.
In the case of distillate stockpiles, the EIA reported a build of 0.014M barrels. Analysts had forecast a build of 0.460M barrels last week, against a previous surge of 4.815M. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships, and fuel for jets.