MOSCOW (MRC) -- US crude oil stocks rose last week but gasoline and distillate stocks fell even as refining activity increased on strong overall fuel demand, reported Reuters with reference to the Energy Information Administration's statement on Wednesday.
Crude inventories rose by 1 MM bbl in the week to Nov. 19, compared with analysts' expectations for a decrease of 481,000 bbl.
Fuel stocks have continued to decline as product demand remains strong. Gasoline stocks fell by 603,000 bbl, compared with analysts' expectations in a Reuters poll for a 461,000-bbl drop. Stocks of gasoline are at their lowest since November 2017.
"Demand for gasoline and diesel fuel continues to be good in this holiday season and I expect that with drivers taking to the roads over the holiday, we're going to see gasoline inventories decline next week," said Andrew Lipow, president of Lipow Oil Associates in Houston.
Overall, gasoline product supplied, a measure of US demand, has averaged 9.3 MMbpd over the last four weeks, or in line with pre-pandemic levels.
"The gasoline demand is phenomenal - it's been unrelenting since the summer, and we are not seeing any decline now," said John Kilduff, partner at Again Capital Markets in New York.
Distillate stockpiles, which include diesel and heating oil, fell by 2 MM bbl, versus expectations for a 1 MM-bbl drop, the EIA data showed. Overall distillate stocks are now at their lowest since November 2018.
Refinery crude runs rose by 243,000 bpd, EIA data showed. Refinery utilization rates rose by 0.7% points.
As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.
We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.
We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, EIA said in a monthly report earlier this year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC