(Reuters) - U.S. crude stocks fell last week as refineries hiked output, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.
Crude inventories fell by 4.4 million barrels in the week ended May 19, compared with analysts' expectations for an decrease of 2.4 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 741,000 barrels, EIA said.
Refinery crude runs rose by 159,000 barrels per day, EIA data showed. Refinery utilization rates rose by 0.1 percentage points.
Gasoline stocks fell by 787,000 barrels, compared with analysts' expectations in a Reuters poll for a 1.2 million barrels drop.
Distillate stockpiles, which include diesel and heating oil, fell by 485,000 barrels, versus expectations for a 743,000 barrels drop, the EIA data showed.
U.S. crude imports rose last week by 165,000 barrels per day.
Oil Storage Report - May 24
Oil Storage Report - May 24
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Storage Report - May 24
A key OPEC committee reportedly agreed Wednesday to back extending the group's output cut for another nine months, ahead of the full OPEC meeting Thursday.
The Joint Ministerial Monitoring Committee, made up of Venezuela, Russia, Saudi Arabia, Oman, Kuwait and Algeria, agreed to support extending current cuts through March, according to Bloomberg sources.
"I think we almost all agree on nine months," Algeria's Energy Minister Noureddine Boutarfa told Bloomberg before the committee meeting.
The Joint Ministerial Monitoring Committee, made up of Venezuela, Russia, Saudi Arabia, Oman, Kuwait and Algeria, agreed to support extending current cuts through March, according to Bloomberg sources.
"I think we almost all agree on nine months," Algeria's Energy Minister Noureddine Boutarfa told Bloomberg before the committee meeting.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Storage Report - May 24
OPEC and their allies will vote on extending the current deal to remove 1.8 million barrels per day from the market Thursday at the biannual OPEC meeting in Vienna. The original deal, struck back in November 2016, originally was to last six months.
"An extension is in the bag," said Phil Flynn, senior market analyst at Price Futures Group said earlier. "I would be shocked if it wasn't extended, and I wouldn't be surprised if OPEC announced an even bigger cut going forward."
Rising U.S. production has limited the effectiveness of the output deal. The EIA reported output climbed to 9.32 million barrels a day last week, the highest since August 2015, after dipping the prior week for the first time in three months. Stockpiles fell by 4.4 million barrels, the seventh straight decline, while analysts expected a drop of 2.8 million barrels. Late Tuesday the American Petroleum Institute, an industry group, reported a U.S. crude supplies decrease of 1.5 million barrels.
"An extension is in the bag," said Phil Flynn, senior market analyst at Price Futures Group said earlier. "I would be shocked if it wasn't extended, and I wouldn't be surprised if OPEC announced an even bigger cut going forward."
Rising U.S. production has limited the effectiveness of the output deal. The EIA reported output climbed to 9.32 million barrels a day last week, the highest since August 2015, after dipping the prior week for the first time in three months. Stockpiles fell by 4.4 million barrels, the seventh straight decline, while analysts expected a drop of 2.8 million barrels. Late Tuesday the American Petroleum Institute, an industry group, reported a U.S. crude supplies decrease of 1.5 million barrels.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Storage Report - May 24
Gas Buddy is getting ready for the summer driving season, checking out gas prices wherever they can find them. They are reporting that more Americans are planning to hit the road this summer compared to 2016, according to their annual Summer Travel Study. They say that more than 82 percent of their people surveyed said they will take a road trip this summer, a 7-percent increase from last year and a 9 percent increase compared to 2015, with a majority (70 percent) planning to take at least two trips.
Gas Buddy goes on to say that, “A key finding behind the surge in travel is a feat never before seen: the national average gasoline price today is nearly the same (up 1.5 cents) as it was to start the year ($2.34), compared to the average increase of 47 cents, and also nearly the same as Memorial Day last year ($2.33). The stability at the pump is likely sparking optimism for the upcoming summer driving season as motorists have not been hit hard by skyrocketing gas prices during the spring.”
For motorists hitting the road, gas prices this Memorial Day will be the second cheapest in the last decade at $2.39 per gallon, substantially lower than the ten-year average of $3.15 per gallon. Since Memorial Day 2016, the average price for a gallon of gas has fluctuated just 31 cents, dropping to the low of $2.12 (Aug 4, 2016) and rising to the high of $2.43 (April 22, 2017).
Gas Buddy goes on to say that, “A key finding behind the surge in travel is a feat never before seen: the national average gasoline price today is nearly the same (up 1.5 cents) as it was to start the year ($2.34), compared to the average increase of 47 cents, and also nearly the same as Memorial Day last year ($2.33). The stability at the pump is likely sparking optimism for the upcoming summer driving season as motorists have not been hit hard by skyrocketing gas prices during the spring.”
For motorists hitting the road, gas prices this Memorial Day will be the second cheapest in the last decade at $2.39 per gallon, substantially lower than the ten-year average of $3.15 per gallon. Since Memorial Day 2016, the average price for a gallon of gas has fluctuated just 31 cents, dropping to the low of $2.12 (Aug 4, 2016) and rising to the high of $2.43 (April 22, 2017).
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group