U.S. crude inventories declined by more than expected last week, while gasoline and distillate stockpiles rose, the U.S. Energy Information Administration (EIA) said on Wednesday.
Crude inventories fell by 4.3 million barrels to 440.8 million barrels in the week to Dec. 8, far exceeding expectations by analysts in a Reuters poll for a 650,000 barrel drop.
U.S. gasoline stocks rose by 408,000 barrels to 224 million barrels last week, the EIA said, less than the 1.9 million-barrel rise analysts had forecast.
West Texas Intermediate futures were up 1.1% to $69.36 a barrel following the report, while U.S. gasoline futures climbed 1.5% to $2.014 a gallon.
“The gasoline demand destruction wasn’t nearly as bad as people had feared, and that could turn the mood of the market around,” said Phil Flynn, an analyst with Price Futures Group.
Last week, gasoline stocks rose sharply, driving prices down on worries of lackluster demand.
Refinery crude runs fell by 104,000 barrels per day in the latest week, according to the report, while utilization rates dipped 0.3 percentage points.
Distillate stockpiles, which include diesel and heating oil, rose by 1.5 million barrels in the week to 113.5 million barrels, versus expectations for 600,000 barrel rise, the EIA data showed.
Meanwhile, net U.S. crude imports fell last week by 423,000 barrels per day, EIA said.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.2 million barrels, the EIA said.
(Reporting by Liz Hampton in Denver; Editing by David Gregorio)