U.S. crude oil stockpiles fell unexpectedly last week as refiners cranked out fuel to the highest level since 2019 during the Memorial Day holiday, the Energy Information Administration (EIA) said on Wednesday.
Refinery crude runs (USOICR=ECI) rose by 482,000 barrels per day (bpd), while refinery utilization rates (USOIRU=ECI) increased by 2.7 percentage points in the week to its highest level since August 2019.
"Refiners have to have some sense that demand is pretty good moving forward from here, so that's going to draw down on crude oil storage," said Bob Yawger, director of energy futures at Mizuho.
Crude inventories (USOILC=ECI) fell by 451,000 barrels in the week to June 2, the EIA said. Analysts in a Reuters poll had expected a 1 million-barrel rise.
Oil prices were little changed following the data. Brent crude futures were up 92 cents, or 1.2%, at $77.25 a barrel at 1442 GMT, while U.S. West Texas Intermediate crude futures gained $1.15, or 1.6%, to $72.93.
Gasoline and diesel stocks rose during the period, the EIA said, but remained below last year's inventory levels.
Gasoline stocks (USOILG=ECI) rose by 2.7 million barrels in the week, the EIA said, compared with analysts' expectations for a 880,000-barrel rise.
Distillate stockpiles (USOILD=ECI), which include diesel and heating oil, rose by nearly 5.1 million barrels in the week, versus expectations for a 1.3 million barrel rise, the EIA said.
"Refiners need to build up those stocks...if we lose a refinery, if there's a disruption, it's kind of a Red Sox bullpen: there's no one really there," said Phil Flynn, an analyst at Price Futures group.
Net U.S. crude imports (USOICI=ECI) rose by 1.6 million bpd, the data showed.
Crude stocks at the Cushing, Oklahoma, delivery hub (USOICC=ECI) rose by 1.7 million barrels last week, the EIA said.
