EIA: US crude inventories drop sharply as refineries boost output ahead of summer season
US commercial crude oil inventories posted a sharper-than-expected decline last week, as refiners ramped up operations to meet anticipated demand during the summer driving season
US commercial crude oil inventories posted a sharper-than-expected decline last week, as refiners ramped up operations to meet anticipated demand during the summer driving season, data from the Energy Information Administration (EIA) showed.
Crude stockpiles fell by 4.3 million barrels to 436.1 million barrels in the week ending 30 May, far exceeding the 1-million-barrel draw forecasted by a Reuters poll. The larger-than-anticipated draw reflects a significant increase in refinery activity, with refinery utilisation jumped by 3.2 percentage points to 93.4%— a level consistent with peak seasonal demand.
Total motor gasoline stocks climbed by 5.2 million barrels over the same period, leaving them around 1% below the five-year average for this time of year. The build suggests that demand for road fuels remains tepid even as the US enters its busiest travel season.
Domestic crude oil production held steady at 13.4 million barrels per day.
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