(Reuters) – U.S. crude oil stockpiles fell last week as exports hit a record high and refinery ramped up output, while gasoline inventories dropped more than expected ahead of the summer driving season, the Energy Information Administration said on Wednesday.
Crude inventories fell 1.4 million barrels in the week to May 11, compared with analysts’ expectations for a decrease of 763,000 barrels.
Net U.S. crude imports fell 411,000 barrels per day as exports rose to a record 2.6 million bpd, benefiting of late from the widening spread between U.S. crude oil and global benchmark Brent, which responds more to world supply outlook.
Crude production continued to grow to record highs, rising 20,000 bpd to 10.72 million bpd last week, the EIA said, though weekly figures are considered less reliable than monthly data. The United States in February produced 10.3 million bpd, a record.
Refining activity rose, particularly in the Midwest, as maintenance season ebbs as summer driving season heats up.
Refinery crude runs rose by 149,000 bpd, while refinery utilization rates rose by 0.7 percentage points to 91.1 percent of overall capacity. U.S. Midwest refinery utilization rates increased last week to 96 percent of capacity, the highest since at least 2010 seasonally.
Still, gasoline stocks were down sharply, falling by a surprise 3.8 million barrels, compared with analysts’ expectations in a Reuters poll for a 1.4 million-barrel drop.
Gasoline demand is up 0.7 percent from last year over the past four weeks to 9.4 million bpd. That demand is anticipated to increase as summer driving season kicks in.
“It’s a bullish report. The gasoline number was pretty good… which you would expect coming up to Memorial Day and summer driving season,” said Bob Yawger, director of energy futures at Mizuho.
The International Energy Agency said on Wednesday that oil inventories worldwide had tightened after a year-and-a-half of supply cuts by major oil producers, along with Venezuela’s ongoing economic crisis that has sapped its production. As oil approaches $80 a barrel, demand may suffer, the IEA said.
Prices were little changed after the data. U.S. crude fell 15 cents to $71.16 a barrel as of 10:45 a.m. EDT, while Brent lost 20 cents to $78.22 a barrel.
Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures rose by 53,000 barrels, the EIA said.
Distillate stockpiles, which include diesel and heating oil, fell 92,000 barrels, versus expectations for a 2.2 million-barrel drop, the EIA data showed.