EIA: US crude stocks fall as refining increases, fuel inventories increase

The Energy Information Administration (EIA), which released its report on Wednesday, said that U.S. crude stockpiles dropped unexpectedly as refining activity increased, while gasoline and distilate inventories showed a surprise build.

The EIA reported that crude inventories dropped by 2.3 millions barrels, to 430.2 million in the week ending February 21. This was in contrast with the analysts' polled expectations of a rise of 2.6 million barrels.

Cushing, Oklahoma's delivery hub for U.S. Crude Futures, saw its stocks rise by 1.3m barrels. They now total 24.6m barrels. This is the highest level since November.

The U.S. president Donald Trump has announced that he will impose new regulations on the storage hub.

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Imports from Canada will be allowed to begin on March 4, which is a longer deadline than expected.

Robert Yawger, Mizuho's analyst, said: "I believe Canadian producers are doing their best to cram as many barrels into the Midcontinent as they can."

The imports of Canadian crude to the U.S. increased by 165,000 barrels a day (bpd), last week, to reach 3.82 million bpd. This is still far below the record of 4,42 million barrels per day (bpd) set earlier this year, when refiners believed that tariffs would be implemented more quickly.

Following the report, global benchmark Brent crude futures fell 26 cents to $72.76 per barrel at 10:58 am EST (1558 GMT). U.S. West Texas Intermediate Futures rose 15 cents to 68.78 per barrel following the report.

The EIA reported that refinery crude runs increased by 317,000 bpd in the last week while utilization rates increased by 1.6% to 86.5%.

The EIA reported that gasoline stocks increased by 400,000 barrels during the week, to reach 248.3 millions barrels. This was in contrast with the expectation of an 800,000 barrel draw.

Last week, U.S. East Coast gas inventories reached their highest levels since June 2021. Midwest gasoline inventories also rose to their highest levels in over a year. ?

The EIA reported that distillate stocks, which includes diesel and heating oil rose by 3.9 millions barrels last week, as opposed to expectations of a drop of 1.5 million barrels.

U.S. Heating Oil Futures fell 2.6% to $2.329 per gallon after the report.

Analyst Giovanni Staunovo at UBS said: "It appears the market did not like the distillate builds, which could also be driven by lower refined products exports."

EIA reported that net U.S. crude oil imports increased last week by 292,000 barrels per day. Last week, exports of all petroleum products dropped to their lowest level since October 2023. Reporting by Liz Hampton, Denver Editing Marguerita Choy

(source: Reuters)