US crude stocks drop unexpectedly

Front-month ICE Brent crude futures remained stable in the first 30 minutes after official weekly US crude stock figures were released today.

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

Commercial US crude inventories dropped by 2.49 million bbls on the week, to 429.91 million bbls on 12 January – the lowest level in past 12 weeks, according to the EIA.

The weekly stock draw ran counter to the American Petroleum Institute's (API) projection of 483,000 bbls build a day earlier.

Official EIA data showed that US refinery utilisation stayed stable at 93% last week.

Gasoline stocks jumped by 3.08 million bbls over the week to 248 million bbls - the highest since February 2022.

Distillate stocks, which include diesel and gasoil, have also risen by 2.37 million bbls to 135 million bbls – the highest since August 2021. Refineries are increasing production ahead of scheduled maintenance season, followed by high demand in spring, a source said.

By Debarati Bhattacharjee

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