US crude stocks rose last week, while inventories of gasoline and distillates like diesel declined further due to strong demand, the Energy Information Administration said on Wednesday.
US oil market supply has tightened in recent weeks as demand has kicked into higher gear, and with the resumption of more international travel, consumption could rise further in the holiday season.
Crude inventories rose by 1 million barrels in the week to Nov. 5, compared with analysts' expectations for an increase of 2.1 million barrels. Oil prices were down on the news.
Gasoline stocks fell by 1.6 million barrels, about in line with analyst expectations, the fifth consecutive week of draws for the most-used US fuel. Overall stocks are at levels not seen since November 2017.
Similarly, distillate stocks, which include diesel and jet fuel,, were down as well, dropping by 2.6 million barrels, versus expectations for a 1.1 million barrels drop. Distillate stocks are at their lowest since April 2020.
"The stats are generally constructive with continued declines in not only gasoline and diesel inventories but jet fuel as well," said Andrew Lipow, president of Lipow Oil Associates in Houston.
The decline in stocks came even as refiners ramped up activity in the most recent week, boosting utilization rates by 0.4 percentage points to 86.7% of overall capacity. Refinery crude runs rose by 343,000 barrels per day.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 34,000 barrels, EIA said.
Net US crude imports fell last week by 192,000 barrels per day.
The US crude futures dropped by $1.22 to $82.93 a barrel, a 1.4% decline, while Brent lost 86 cents to $83.93 a barrel, as of 10:57 a.m. EST