US crude stockpiles fall, fuel inventories rise on strong refining, EIA says
U.S. crude stocks fell while gasoline and distillate inventories rose last week on robust refining activity, the Energy Information Administration said on Wednesday.
Crude inventories fell by 1.9 million barrels to 422.9 million barrels in the week ended December 26, the EIA said, compared with analysts' expectations in a Reuters poll for a 867,000-barrel draw. Analysts pointed to ad valorem taxes applied to crude inventories - which typically prompt a reduction in stocks - as a reason for the drawdown.
"Year end numbers tend to be distorted, the implication of this EIA report would be bullish oil and bearish refining, but inventory shifting due to year-end tax burdens make this one less meaningful," said Josh Young, chief investment officer for Bisons Interests.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 543,000 barrels in the week, the EIA said.
Oil futures pared earlier gains following the report. Global Brent crude futures were trading at $61.38 a barrel, up 5 cents at 10:43 a.m. ET (1543 GMT), while U.S. West Texas Intermediate futures were at $58 a barrel, also up 5 cents.
Source : Reuters.com
