U.S. gasoline stockpiles hit 2-yr low on stronger demand
U.S. gasoline stockpiles fell unexpectedly last week to a 2-yr low on strengthened demand, the U.S. Energy Information Administration (EIA) said on Wednesday, while crude inventories also posted a surprise drawdown as imports slipped.
Gasoline stocks fell by 2.7 MMbbl in the week ending Oct. 25 to 210.9 MMbbl, their lowest since November 2021. Analysts in a Reuters poll had forecast a 600,000-bbl build.
Gasoline supplied, a proxy for demand, rose to 9.2 MMbpd from 8.8 MMbpd a week earlier and marked its highest level since the week ending Oct. 4.
"It looks like we are back to counter-seasonal draws. This displays healthier demand and less robust supply than consensus expectations," said Josh Young, chief investment officer at Bison Interests. "If these inventory declines continue, oil prices may rise and OPEC+ may return barrels to the market."
U.S. gasoline futures extended gains after the data, while U.S. crude and Brent crude futures were little changed.
Crude stocks fell by 515,000 bbl to 425.5 MMbbl, the EIA said, compared with analysts' expectations for a 2.3-MMbbl rise.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 681,000 bbl.
Net U.S. crude imports fell by 605,000 bpd to 1.7 MMbpd, as exports ticked up 149,000 bpd to 4.3 MMbpd.
Imports of crude oil from Saudi Arabia fell to their lowest point last week since January 2021, at just 13,000 bpd, down from 150,000 bpd on the week. Crude imports from Canada, Iraq, Colombia, Brazil all slipped on the week.
"Lower imports helped crude inventories eke out a minor draw," said Matt Smith, analyst at Kpler.
Refinery crude runs fell by 31,000 bpd and refinery utilization rates slipped by 0.4% to 89.1% of total capacity.
Distillate stockpiles, which include diesel and heating oil, fell by 1 MMbbl to 112.9 MMbbl, versus expectations for a 1.6-MMbbl drop, the EIA data showed.
U.S. heating oil futures pared gains after the report showed the smaller-than-expected draw.
Petroleum products supplied, a proxy for demand, rose to its highest level last week since November 2023.
"Quite a supportive dataset, with draws across commercial crude and refined products, supported by strong implied oil demand," said Giovanni Staunovo, analyst with UBS.
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