U.S. distillate stocks, refinery utilization drops after winter storm -EIA

U.S. distillate stocks, refinery utilization drops after winter storm -EIA

Article content

NEW YORK — U.S. distillate inventories fell more than expected during their peak demand season and refinery utilization plummeted, the Energy Information Administration (EIA) said on Thursday, after a winter storm roiled the energy market at the end of December.

Distillate stockpiles, which include diesel and heating oil, fell 1.4 million in the week to Dec. 30, versus expectations for a 396,000-barrel drop, the EIA data showed. Typically, distillate consumption increases during the winter season in the northern hemisphere due to heating demand.

Article content

Meanwhile, refinery utilization rates fell to 79.6%, the lowest since March 2021. They dropped 12.4% from the previous week, the largest weekly drop since February 2021.

U.S. gasoline stocks fell 346,000 in the week, the EIA said, compared with analysts’ expectations in a Reuters poll for a 486,000-barrel drop.

While product inventories fell, total product supplied – a proxy for fuel demand – also fell, dropping by a record 4.6 million barrels per day, EIA data showed. Total product supplied dropped to its lowest since June 2021.

“Inventories were impacted by the shutdown in supply and refining due to the winter storm,” said Phil Flynn, analyst at Price Futures group. “If you look at the big picture, we came in pretty in line with expectations, even with all the turmoil. Inventories, normally, should be building this time of year and they’re not.”

After the data, oil prices gained over 1.5% on the day.

Crude inventories rose 1.7 million barrels in the week, compared with analysts’ expectations in a Reuters poll for a 1.2 million-barrel rise.

See also  Origin Fight Shows Emerging Force of Australia’s Mega-Pensions

Crude stocks at the Cushing, Oklahoma, delivery hub rose 244,000 barrels.

Refinery crude runs fell 2.33 million barrels per day (bpd).

Net U.S. crude imports fell 1.28 million bpd. (Reporting by Stephanie Kelly Editing by Marguerita Choy and David Gregorio)

Leave a Reply

Your email address will not be published. Required fields are marked *