US crude stockpiles fall less than expected at 2.5 million barrels: EIA

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U.S. crude stocks fell less than expected last week, while gasoline rose unexpectedly and distillate inventories soared, the Department of Energy said on Wednesday.

Crude inventories fell by 2.5 million barrels in the last week, compared with analysts' expectations for a decrease of 3 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 232,000 barrels, the Energy Information Administration said. Distillate stockpiles, which include diesel and heating oil, rose by 4.1 million barrels, versus expectations for a 256,000-barrel increase, the EIA data showed. U.S. crude imports also fell last week by 522,000 bpd.

On Tuesday, American Petroleum Institute (API) reported a surprise crude inventory build of 2.2 million barrels for last week. The API also cited an unexpected rise of 1.5 million barrels in gasoline and 2.6 million in distillates, that include diesel, for the week to July 8.

Oil prices fell 2 percent on Wednesday after the International Energy Agency (IEA) said a global supply glut was threatening market recovery and investors braced for a possible rise in U.S. inventories.

The IEA, which advises industrialized nations on energy policies, said crude stockpiles kept rising last month, pushing floating storage to the highest level in seven years.

"(Stocks) are at such elevated levels, especially for products for which demand growth is slackening, that they remain a major dampener on oil prices," the Paris-based group said in a report.





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After EIA data was released, Brent crude was down $1.56, or 3.22 percent, at $46.90 a barrel. U.S. U.S. crude slipped by 1.14, or 2.44 percent, to $46.83.


Both benchmarks rose nearly 5 percent on Tuesday for their largest daily gain in three months before trade group American Petroleum Institute (API) reported a surprise crude inventory build.





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A large crude build Wednesday could spark a selloff breaching the 100-day moving averages of $45.06 for Brent, Shelton added. U.S. crude has already breached its 100-day moving average of $46.26, hitting $46.07 earlier on Wednesday.


Jim Ritterbusch of Chicago-based oil markets consultancy said U.S. gasoline futures, also known as RBOB, will likely fall more than crude in the event of a large stock build, with refining margins, called cracks, particularly under pressure.

"RBOB will revive its role as downside leader in the complex, in contributing to weakening in the NYMEX crack differentials into new low territory," he said.


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