Investing.com -- U.S. crude oil inventories tumbled by almost 10 million barrels last week, way above forecasts, while gasoline and distillate stocks rose only slightly, the agency responsible for national energy data reported Wednesday.
The Weekly Petroleum Status Report by the Energy Information Administration, or EIA, suggests a ramp-up in fuel processing by refiners ahead of summer travels that were expected to kick into higher gear with next week’s 4th of July Independence Day holiday.
The U.S. crude inventory balance fell by 9.603M barrels during the week ended June 23, multifold to the 1.5M barrel decline forecast by industry analysts polled by Investing.com. It was the largest weekly draw in crude since the week ended May 21.
The latest weekly decline in crude stockpiles adds to the 3.831M barrel draw In the prior week to June 16.
SPR draw, if added, makes last week's crude decline 11M
The crude build reported by the EIA also came with a usual caveat: The release of 1.4M from the U.S. Strategic Petroleum Reserve, or SPR, without which the inventory drop would logically have been 11M.
On the gasoline inventory side, the EIA reported a build of 0.603M barrels. Analysts had expected the agency to cite a build of 1.0M barrels instead, after the previous week’s rise of 0.479M barrels. Automotive fuel gasoline is the No. 1 U.S. fuel product.
In the case of distillate stockpiles, the EIA reported a build of 0.124M barrels. Analysts had forecast a rise of just 0.8M barrels last week, against a previous decline of 0.433M. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships, and fuel for jets.