U.S. Crude Oil Inventories Fall for Third Straight Week -- Update

By Anthony Harrup

U.S. crude oil inventories fell in a surprise third consecutive week of declines, while stocks of gasoline and distillates increased, according to data released Wednesday by the U.S. Energy Information Administration.

Commercial crude oil stocks excluding the Strategic Petroleum Reserve fell by 4.9 million barrels to 440.2 million barrels in the week ended July 12, and were about 5% below the five-year average for the time of year, the EIA said.

Analysts surveyed by The Wall Street Journal had predicted crude stockpiles would be unchanged from the previous week.

Oil held in the SPR increased by 650,000 barrels to 373.7 million barrels. Oil stored at Cushing, Okla., the Nymex delivery hub, was down by 875,000 barrels at 32.7 million barrels.

Impact appeared limited from Hurricane Beryl, which made landfall early last week in Texas and prompted temporary port closures. The EIA estimated crude production at 13.3 million barrels a day, unchanged from the week before, while crude imports rose by 277,000 barrels a day to 7 million barrels a day. Crude exports averaged little under 4 million barrels a day, down by 35,000 barrels a day from the previous week.

Refinery runs were lower, with capacity use falling by 1.7 percentage points to 93.7% against expectations in the Journal survey of a 0.6 percentage-point decline. Capacity utilization on the Gulf coast fell to 92.7% from 97%, but rose everywhere else.

Gasoline inventories increased by 3.3 million barrels to 233 million barrels and were slightly above the five-year average, the EIA said. Gasoline demand fell by 615,000 barrels a day to 8.8 million barrels a day, falling in the wake of the July 4 holiday week. Gasoline stocks were projected to have fallen by 1.3 million barrels.

Distillate fuel stocks increased for a second straight week, rising by 3.5 million barrels to 128.1 million barrels, and were 7% below the five-year average. Distillate stocks were forecast to have fallen by 400,000 barrels.

 
Change in U.S. oil inventories for the week ended July 12: 
 
                   Crude       Gasoline      Distillates         Refinery Use 
EIA data:          -4.9           3.3            3.5                 -1.7 
Forecast:          unch          -1.3           -0.4                 -0.6 
 

Note: Numbers in millions of barrels, with the exception of refinery use, which is in percentage points.

Write to Anthony Harrup at [e-mail]

(END) Dow Jones Newswires

07-17-24 1141ET