US crude stocks drop unexpectedly

Commercial US crude inventories fell by massive 7.11 million bbls, to 436.57 million bbls on 22 December, according to the US Energy Information Administration (EIA) data released today.

PHOTO: Oil refinery complex with big American flag displayed, and fumes coming out from the chimney. Getty Images

The weekly stock draw ran counter to the American Petroleum Institute's (API) projection of a 1.84 million bbls build a day earlier.

Official EIA data also showed that US refinery utilisation rose by nearly 1 percentage point to 93% last week – the highest since September.

Gasoline stocks declined by 669,000 bbls over the week, to 226 million bbls, partly because demand increased last week.

Distillate stocks, which include diesel and gasoil, have again risen by 741,000 bbls to 116 million bbls – the highest in 11 weeks.

By Nithin Chandran

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