According to the Energy Information Administration (EIA), U.S. crude inventories decreased for the third consecutive week, while fuel stockpiles experienced an increase in the week ending December 6. This trend is attributed to robust refinery activity.
Key Highlights:
Crude Inventory Changes:
U.S. crude stocks fell by 1.4 million barrels, bringing the total to 422 million barrels. This decline was greater than analysts’ expectations of a 901,000-barrel draw.
Cushing Hub Stocks:
Crude stocks at the Cushing, Oklahoma delivery hub dropped by 1.3 million barrels.
Fuel Inventory Trends:
Fuel inventories rose significantly, with gasoline stocks increasing by 5.1 million barrels to 219.7 million barrels, surpassing expectations for a 1.7 million-barrel build.
Distillate stockpiles, which include diesel and heating oil, rose by 3.2 million barrels to 121.3 million barrels, compared to a forecasted increase of 1.4 million barrels.
Refinery Activity:
U.S. refinery utilization rates decreased by 0.9 percentage points to 92.4%, yet remain strong. The four-week average utilization was 91.6%, up from 89.4% during the same period last year.
Refinery crude runs fell by 251,000 barrels per day to 16.66 million bpd.
Crude Imports:
Net U.S. crude imports decreased by 170,000 barrels per day last week.
Market Reaction:
Following the EIA report, Brent and U.S. crude futures experienced a slight pullback due to the unexpected rise in fuel inventories. Global Brent futures were trading at $72.92 per barrel, while U.S. West Texas Intermediate futures were at $69.50 per barrel.
Production Insights:
U.S. field production of crude reached a record high of 13.6 million bpd, indicating a continued upward trend in domestic production.