[Editor's note: this story was updated at 12:15 p.m. CT June 21.]
U.S. crude oil and gasoline stockpiles fell last week, while distillate inventories rose, the Energy Information Administration (EIA) said June 21.
Crude inventories fell 2.5 million barrels (bbl) in the week to June 16, surpassing analysts' expectations for a decrease of 2.1 million bbl, as imports rose marginally by 56,000 bbl/d.
Crude stocks at the Cushing, Okla., delivery hub for U.S. crude futures fell by 1.08 million bbl, the EIA said.
Crude initially climbed on the report, but quickly retreated. By 10:24 a.m. CT (15:24 GMT), West Texas Intermediate crude futures were down 10 cents at $43.41/bbl and Brent crude fell 23 cents to $45.79/bbl.
The price gains in the report's immediate aftermath were hard to sustain because they were not structural changes said Abhishek Kumar, senior energy analyst at Interfax Energy’s Global Gas Analytics in London.
“U.S. crude and gasoline stockpiles are significantly higher compared with their five-year averages, which will weigh on prices," Kumar said. "Meanwhile, oil output in the country is still rising despite recent declines in oil prices.”
U.S. crude production has been steadily growing and last week rose to 9.35 million bbl/d, up 20,000 bbl/d from the previous week, the EIA said.
Gasoline stocks fell 578,000 bbl, compared with analysts' expectations for a seasonally unusual 443,000 bbl gain, which had been seen as bearish in the market. Stocks of the motor fuel had also risen unexpectedly by 2.1 million bbl in the previous week, despite the start of the summer driving season.
"Gasoline demand rebounded smartly to more normal levels for this time year, giving credence to the view that some of the lackluster demand was weather-related," said John Kilduff, a partner at Again Capital Management.
Distillate stockpiles, which include diesel and heating oil, rose 1.1 million bbl, vs. expectations for a 465,000 bbl increase, the EIA data showed.
Refinery crude runs fell by 104,000 bbl/d as utilization rates fell 0.4 percentage point to 94% of total capacity, EIA data showed.
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