US crude stocks fell 5.796 million barrels to 342 million barrels for the week ending December 17, despite a drop in crude runs and a rise in import figures, according to data released late Tuesday by the American Petroleum Institute.
Still, US crude stocks were 13.26 million barrels above year-ago levels.
The drop in stocks outpaced analyst expectations of a 2.4-million-barrel draw.
The largest draw was seen in the Gulf Coast region where stocks declined 4.073 million barrels, most likely due to year-end tax incentives. Typically, movements of crude oil from the Gulf Coast to the Midwest increase at year's end as refiners work to move inventories to lessen their tax burden.
Midwest stocks increased by 1.038 million barrels to 95.029 million barrels, API said.
Refinery runs were down by 0.7 percentage points to 85.4%, said the group.
At Cushing, Oklahoma, home of the NYMEX crude contract's delivery point, stocks increased 225,000 barrels to 35.474 million barrels.
Independent analyst Jim Ritterbusch said the weakening of the NYMEX crude curve over the past couple of weeks signaled an increase in Cushing supplies.
US crude imports rose 400,000 b/d to 9.460 million b/d, with the bulk of the increase coming from the Gulf Coast where imports were up 388,000 b/d to 5.633 million b/d.
In products, total gasoline stocks fell a precipitous 2.905 million barrels to 219.513 million barrels, running counter to analysts expectations of a 1.75-million-barrel build. Still, stocks were 3.644 million barrels above year-ago levels. A fair amount of the draw was seen in the US Atlantic Coast region, which shed 784,000 barrels.
Middle distillate stocks rose 16,000 barrels to 161.257 million barrels, which is 3.826 million barrels lower than the same period a year ago. Low sulfur diesel and ULSD stocks rose 1.365 million barrels to 111.29 million barrels, while high sulfur heating oil stocks fell 1.349 million barrels to 49.967 million barrels.
The heating oil stock draw fell within historical tendencies, as colder temperatures lifted demand, notably in the US Atlantic Coast, where stocks fell 1.619 million barrels to 40.619 million barrels.
--Alison Ciaccio
Still, US crude stocks were 13.26 million barrels above year-ago levels.
The drop in stocks outpaced analyst expectations of a 2.4-million-barrel draw.
The largest draw was seen in the Gulf Coast region where stocks declined 4.073 million barrels, most likely due to year-end tax incentives. Typically, movements of crude oil from the Gulf Coast to the Midwest increase at year's end as refiners work to move inventories to lessen their tax burden.
Midwest stocks increased by 1.038 million barrels to 95.029 million barrels, API said.
Refinery runs were down by 0.7 percentage points to 85.4%, said the group.
At Cushing, Oklahoma, home of the NYMEX crude contract's delivery point, stocks increased 225,000 barrels to 35.474 million barrels.
Independent analyst Jim Ritterbusch said the weakening of the NYMEX crude curve over the past couple of weeks signaled an increase in Cushing supplies.
US crude imports rose 400,000 b/d to 9.460 million b/d, with the bulk of the increase coming from the Gulf Coast where imports were up 388,000 b/d to 5.633 million b/d.
In products, total gasoline stocks fell a precipitous 2.905 million barrels to 219.513 million barrels, running counter to analysts expectations of a 1.75-million-barrel build. Still, stocks were 3.644 million barrels above year-ago levels. A fair amount of the draw was seen in the US Atlantic Coast region, which shed 784,000 barrels.
Middle distillate stocks rose 16,000 barrels to 161.257 million barrels, which is 3.826 million barrels lower than the same period a year ago. Low sulfur diesel and ULSD stocks rose 1.365 million barrels to 111.29 million barrels, while high sulfur heating oil stocks fell 1.349 million barrels to 49.967 million barrels.
The heating oil stock draw fell within historical tendencies, as colder temperatures lifted demand, notably in the US Atlantic Coast, where stocks fell 1.619 million barrels to 40.619 million barrels.
--Alison Ciaccio
