U.S. Oil Inventories Decline as Refinery Activity Hits 4-Year High
By Dan Molinski
U.S. inventories of crude oil declined last week as refinery
activity sped up to its strongest level since 2019, according to
data released Wednesday by the Energy Information
Benchmark U.S. oil prices that were higher before the report was
released remained higher afterward. The Nymex front-month crude
contract for July delivery was recently up 1.6% at $72.89 a
Commercial crude-oil stockpiles fell by 452,000 barrels last
week to 459.2 million barrels, and are now 2% below the five-year
average, the EIA said. Analysts surveyed by The Wall Street Journal
had predicted crude stockpiles would rise by 1.1 million barrels
from the prior week.
The drop came despite a 1.9-million-barrel transfer of crude oil
last week from the nation's Strategic Petroleum Reserve to the
commercial side, in transactions being conducted by the Department
of Energy each week over the past couple months.
Oil stored at Cushing, Okla., the delivery point for U.S.
stocks, increased by 1.7 million barrels from the previous week to
40.6 million barrels, the EIA said in its weekly report.
U.S. crude-oil production jumped by 200,000 barrels a day last
week, to 12.4 million barrels a day, the highest since March 27,
2020, according to the EIA.
Gasoline stockpiles rose by 2.7 million barrels to 218.8 million
barrels, compared with analysts' expectations of just a
Distillate stocks, which are mostly diesel fuel, jumped by 5.1
million barrels to 111.7 million barrels, and are now about 16%
below the five-year average, the EIA said. Analysts had forecast
distillates inventories would rise by a smaller, 1 million barrels
The refining capacity utilization rate soared by 2.7 percentage
points from the previous week to 95.8%. That was the highest rate
since Aug. 16, 2019, and compared with expectations for just a
U.S. oil inventories for the week ended June 2:
Crude Gasoline Distillates Refinery Use
EIA data: -0.5 +2.7 +5.1 +2.7
Forecast: +1.1 +0.2 +1.0 +0.5
Note: Numbers in millions of barrels, with the exception of
refinery use, which is in percentage points.
Write to Dan Molinski at email@example.com
(END) Dow Jones Newswires
June 07, 2023 11:12 ET (15:12 GMT)
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