U.S. crude oil inventories declined for the 10th consecutive week as levels at the Cushing Oklahoma center continued to fall down to three-year lows, while gasoline and distillate inventories climbed, according to the Energy Information Administration.
Crude stockpiles declined 1.1 million barrels in the latest week, against analyst estimates for a decline of 1.6 million barrels. At the level of 411.6 million barrels, crude inventories were at the lowest since February 2015 and the streak of drawdowns that started late November marks a record, according to the EIA figures.
Crude reserves at the Cushing, Oklahoma, delivery hub for U.S. crude futures declined by 3.2 million barrels to 29.2 million, their lowest level since January 2015, EIA stated.
The continuous decline in U.S. inventories comes even as output started to rise again, up to 9.9 million bpd, close to the all-time U.S. record of 10.04 million bpd hit in 1970 as the refining runs decreased.
Gasoline and distillate demand has been solid, with motor gasoline product produced over the last four weeks increasing 5.4 percent from the year-prior period, and distillate fuels observing a 15.3 percent rise year-on-year.
Gasoline stocks increased 3.1 million barrels, against the estimated 2.5 million barrel increase by analysts. Distillate inventories edged up by 639, 000 barrels against the expected 1.5 million barrel decline.
Last week, total U.S. crude imports declined by 71, 000 bpd.
The material has been provided by InstaForex Company – www.instaforex.com