US crude inventories drop unexpectedly while gasoline builds

US crude stockpiles fell unexpectedly last week while inventories of gasoline rose, as refineries ramped back up in the aftermath of Hurricane Harvey.

Data from the US Energy Information Administration on Wednesday showed US crude stockpiles dropped 1.8m barrels in the week ending September 22. Analysts had expected a 3.4m barrel build, according to Thomson Reuters.

Gasoline stockpiles, meanwhile, rose by 1.1m barrels from a week earlier, EIA data showed, compared to expectations for a drop of 921,000 barrels. Distallate fuel inventories — which include diesel and heating oil — decreased by 814,000 barrels, versus the 2.2m barrel fall that analysts had forecast.

As the clean-up from Harvey continues, US crude oil refinery inputs averaged 1m barrels a day more than a week earlier, for a total of 16.2m barrels a day, with refineries operating at 88.6 per cent operable capacity last week, the data showed. Gasoline production averaged 9.9m barrels a day, while distillate fuel production grew to an average of 4.6m barrels a day.

After the data release, a barrel of West Texas Intermediate, the US standard, was up 0.42 per cent to $52.10 a barrel, while Brent, the international standard, was down 0.6 per cent at $57.58 a barrel.


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