EIA: US crude inventories dropped more than expected

According to the latest data from the Energy Information Agency (EIA), the commercial crude inventories in the US fell 4.7 million barrels in the week ending 17 December 2021 to 423.6 million barrels. 

The drops are largely attributed to the year-end tax consideration, where companies refrain from keeping stocks to cut down on royalty taxes.

Meanwhile, gasoline inventories piled up 5.5 million barrels, which many analysts considered as an early sign of softening demand due to Omicron. 

Refinery utilization rates increased point two percentage points to 89.6%.

Net US crude import rose 489,000 barrels per day last week.