US Crude Stockpiles Drop, But Fuel Builds Sharply: Report

The drawdown in U.S. crude oil inventories was related in part to year-end tax considerations that prompt companies to reduce inventories, especially in the Gulf Coast, to reduce tax burdens.

David Gaffen, Reuters

U.S. crude oil stockpiles fell last week while gasoline inventories surged by more than 10 million barrels, the biggest weekly build since April 2020, as supplies backed up at refineries due to reduced fuel demand at the end of the year.

U.S. gasoline stocks jumped by 10.1 million barrels in the week to Dec. 31 to 232.8 million barrels, the Energy Information Administration (EIA) said on Jan. 5, compared with expectations in a Reuters poll for a 1.8 million-barrel rise.

Analysts attributed the surprising gasoline build to steady refining production, combined with a fall-off in demand due to the coronavirus Omicron variant.

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