BUSINESS EIA: US crude oil inventories decrease more than expected last week

BUSINESS

EIA: US crude oil inventories decrease more than expected last week

CGTN

02:48, September 08, 2018

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(Photo: CGTN)

US crude stockpiles fell more than expected last week, the Energy Information Administration (EIA) said on Thursday.

Crude inventories fell 4.3 million barrels in the week to August 31, compared with analysts' expectations for a decrease of 1.3 million barrels. The decline brought stockpiles to 401.49 million barrels, the lowest levels since February 2015.

Stocks at the Cushing, Oklahoma, delivery hub for US crude futures rose by 549,000 barrels, EIA said.

"The large crude oil inventory drawdown makes for a bullish report, despite the appreciable gains in refined product inventory levels," said John Kilduff, a partner at Again Capital Management in New York.

Refiners' demand for crude oil and drivers' demand for gasoline remain supportive of the market, with gasoline demand remaining near the highest levels of the season, he said. Still, he cautioned that rising stockpiles at Cushing were somewhat bearish.

US crude futures rose slightly after the data was released, while gasoline futures pared gains owing to the unexpected build.

Refinery crude runs rose by 81,000 barrels per day, EIA data showed. Refinery utilization rates rose by 0.3 percentage point to 96.6 percent of total capacity.

The West Texas Intermediate (WTI) for October delivery price decreased by 1.4 percent to settle at 67.77 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery decreased by 1.0 percent to settle at 76.50 dollars a barrel on the London ICE Futures Exchange. 

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