U.S. crude stocks fell unexpectedly last week, and gasoline and distillate inventories decreased more than expected, the Energy Information Administration (EIA) said on Oct. 26.
Crude inventories fell by 553,000 barrels (bbl) in the last week, compared with analysts' expectations for an increase of 1.7 MMbbl. Crude stocks at the Cushing, Okla., delivery hub fell by 1.3 MMbbl, EIA said.
West Texas Intermediate crude futures for December delivery were last down 21 cents to $49.75/bbl, or 0.4%, after earlier hitting a session low of $48.87. Brent crude futures for December delivery were down 40 cents to $50.39/bbl, a 0.8% loss.
"It was a supportive report with across-the-board inventory declines, fairly large in gasoline and distillates," said John Kilduff, partner at New York energy hedge fund Again Capital. "Crude oil import volumes remain restrained, with a much smaller-than-expected rebound from the previous week's low levels."
U.S. crude imports rose last week by 133,000 bbl/d.
Refinery crude runs rose by 182,000 bbl/d, EIA data showed. Refinery utilization rates rose by 0.6 percentage points.
Gasoline stocks fell by 2 MMbbl, compared with analysts' expectations in a Reuters poll for a 1 MMbbl drop.
Distillate stockpiles, which include diesel and heating oil, fell by 3.4 MMbbl, vs. expectations for a 1.4 MMbbl drop, the EIA data showed. On the Gulf Coast, distillate stocks fell to their lowest seasonal levels since October 2014.
"Although the draw gives the data a definite bullish tilt, looking deeper into the numbers, we see a rise in U.S. production that's evidence of rigs coming online in the last few months," said Tariq Zahir, trader in crude oil spreads at Tyche Capital Advisors in New York.
"Spot crude has had a hard time gaining any traction above the $50 level to the upside even though we have see quite a few draws in the last few weeks," he said. Rather, the focus remains on geopolitics and the results of upcoming OPEC negotiations.
Recommended Reading
Chevron to Begin Marketing Shale-gas Assets in Canada's Duvernay
2024-01-19 - Chevron plans to put its Alberta, Canada, shale-gas business up for sale as it continues to streamline global operations.
Chevron's Duvernay Sale Seen Attracting Mid-sized Canadian Shale Operators
2024-01-25 - As Chevron Corp. markets its Duvernay shale assets, the U.S. oil major is most likely to find a buyer among a handful of mid-sized Canadian firms looking to capitalize on the region.
Athabasca Oil, Cenovus Energy Close Deal Creating Duvernay Pureplay
2024-02-08 - Athabasca Oil and Cenovus Energy plan to ramp up production from about 2,000 boe/d to 6,000 boe/d by 2025.
Production from Canada’s Montney, Duvernay Gains Momentum
2024-01-05 - The dust has settled on acquisitions, and the leading players have publicized five-year plans that demonstrate a commitment to increasing production from Canada’s premier shale plays.
Analyst: Chevron Duvernay Shale Assets May Sell in $900MM Range
2024-01-29 - E&Ps are turning north toward Canadian shale plays as Lower 48 M&A opportunities shrink, and Chevron aims to monetize its footprint in Alberta’s Duvernay play.