U.S. crude oil stockpiles fell last week, with most of the decline coming out of the Cushing, Okla., storage hub, while gasoline and distillate inventories rose slightly, the Energy Information Administration (EIA) said Nov. 22.
Crude inventories fell 1.9 million barrels (bbl) in the week to Nov. 17, slightly more than analysts' forecasts in a Reuters poll for a decrease of 1.5 million bbl, but much less than 6.4 million-bbl draw reported by industry group the American Petroleum Institute late Nov. 21.
Crude stocks in Cushing fell by 1.8 million bbl, the EIA said. The key U.S. storage hub and delivery point for U.S. crude futures could see additional draws in coming weeks, depending on how long the U.S.-Canada Keystone pipeline, which delivers to Cushing, is shut.
That line was shut last week after about 5,000 bbl of oil spilled from the line in South Dakota, contributing to a rise in crude futures. TransCanada Corp. (NYSE: TRP), which operates the line, is cutting deliveries through at least the end of the month.
Oil futures dipped on the EIA report, pulling back from earlier gains. U.S. West Texas Intermediate crude futures were up 74 cents to $57.56/bbl as of 9:50 a.m. CST (15:50 GMT), giving back earlier gains that saw the contract touch $58.05.
"Current price levels are still inciting U.S. companies to produce more, which will remain a concern for the OPEC ahead of the cartel’s November meeting," said Abhishek Kumar, senior energy analyst at Interfax Energy’s Global Gas Analytics in London.
U.S. crude imports fell last week by 487,000 bbl/d as export rose 462,000 bbl/d.
Crude production rose to another weekly record of 9.66 million bbl/d and monthly U.S. production exceeded 10 million bbl/d in the 1970s, according to government figures.
OPEC, along with other key producers, are expected to extend their supply-cut agreement when the group meets on Nov. 30. OPEC and others cut supply by 1.8 million bbl/d starting in January 2017. The current agreement extends through March 2018.
U.S. distillate stockpiles, which include diesel and heating oil, rose 269,000 bbl, vs.expectations for a 1.2 million-bbl drop, the EIA data showed. Overall, distillate inventories have been trending downward in recent weeks.
Refinery crude runs rose by 199,000 bbl/d as utilization rates rose by 0.3 percentage point to 91.3% of total capacity, EIA data showed.
Gasoline stocks rose by 44,000 bbl, compared with analysts' expectations for a 737,000-bbl gain.
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