A sharp draw in U.S. commercial crude oil stocks during the reporting week ended December 6 was offset by an equally sharp build in gasoline and distillate stocks, Energy Information Administration (EIA) oil data showed.
U.S. crude oil stocks fell 10.59 million barrels to 375.25 million barrels for the reporting week ended December 6, the single largest week-over-week draw in EIA data since stocks fell more than 11 million barrels in December 2012.

Analysts surveyed Monday by Platts had been expecting a draw closer to 2.8 million barrels.

But the New York Mercantile Exchange (NYMEX) crude oil futures market had largely priced in the outsized drawdown, with the January contract trading down around 38 cents at $98.13 per barrel shortly after the data was released.

This is likely due to the fact that crude oil stocks remain ample, sitting 9.75% above the five-year average. But it is also likely due to a near-barrel-for-barrel increase in U.S. gasoline and distillate stocks, which rose a combined 11.26 million barrels the week ended December 6.

U.S. gasoline stocks rose 6.72 million barrels to 219.15 million barrels, putting them at a 2.43% surplus to the five-year average. U.S. distillate stocks rose 4.54 million barrels to 118.07 million barrels, which brought the deficit to the five-year average to 16.9% from nearly 20%.

Analysts had been expecting a 2.1 million-barrel build in gasoline stocks, with a 1.3 million-barrel draw in distillate stocks.

Meanwhile, the largest impact to crude oil stocks was felt in the U.S. Gulf Coast (USGC) region, where inventories fell 7.2 million barrels to 184.42 million barrels, as imports plummeted 646,000 barrels per day (b/d) to 3.25 million b/d.

This is the lowest USGC imports have been since the week ended November 1, at 3.21 million b/d.

The Houston Pilots, an organization that monitors area shipping, had suspended inbound and outbound boardings on December 5 due to bad weather. The Houston Ship Channel serves five refineries in the Houston area and three in Texas City with a combined refining capacity of 2.23 million b/d or about 13% of total U.S. refining capacity. Loadings resumed by December 9, according to a Houston Pilots source.

Imports from Kuwait fell 557,000 b/d to 127,000 b/d, while imports from Saudi Arabia fell 112,000 b/d to 1.3 million b/d. Imports from Mexico fell as well, down 135,000 b/d to 1.16 million b/d.

But the draw in USGC stocks comes even as crude oil runs fell 272,000 b/d to 8.29 million b/d. Despite the decline, USGC refinery utilization is still running at 92.9% of capacity, which helped to boost refined product stocks in the region.

USGC gasoline stocks rose 2.69 million barrels to 74.92 million barrels the week ended December 6, while distillate stocks rose 572,000 barrels to 37.29 million barrels.

Combined low- and ultra-low sulfur diesel (ULSD) stocks rose 917,000 barrels, even if the deficit to the five-year average remained steady around 7%.

Meanwhile, total U.S. refinery utilization rose 0.2 percentage point to 92.6% of capacity, helped by a 25,000 b/d increase in crude oil runs, which rose to 16.13 million b/d the week ended December 6, the highest since the week ended July 12, when runs were 16.24 million b/d.

Analysts had been expecting runs to remain flat.

The drop in USGC crude oil runs was offset by increases in both the U.S. Midwest and U.S. Atlantic Coast (USAC).

Midwest runs rose 142,000 b/d to 3.69 million b/d, which helped to cut crude oil stocks by 310,000 barrels to 110.28 million barrels. Stocks at Cushing, Oklahoma -- delivery point for the NYMEX crude oil contract -- rose 625,000 barrels to 41.22 million barrels.

Line filling on TransCanada's Gulf Coast Project pipeline, which connects Cushing to the USGC, began on Saturday with a 3 million-barrel initial injection. However, this falls outside of the EIA's data-collection window.

Midwest gasoline stocks rose 430,000 barrels to 48.98 million barrels, but distillate stocks jumped 1.02 million barrels to 25.98 million barrels.

Combined low- and ULSD stocks in the Midwest rose 1.1 million barrels to 25.38 million barrels, putting them at a more comfortable 1.76% surplus to the EIA five-year average.

On the USAC, crude oil runs rose 105,000 b/d to 1.1 million b/d, helping to boost utilization rates 1 percentage point to 85.3% of capacity. EIA data boosted USAC operable capacity by 3,000 b/d to 1.297 million b/d.

The uptick in runs, which have jumped a combined 247,000 b/d during the past eight weeks, has helped keep USAC gasoline stocks steady.

Stocks in the region -- which is home the New York Harbor-delivered NYMEX RBOB contract -- rose 3.04 million barrels to 57.31 million barrels the week ended December 6. This puts USAC gasoline stocks at a 3.68% surplus to the five-year average.

USAC distillate stocks, meanwhile, rose 1.55 million barrels to 37.69 million barrels the week ended December 6. ULSD stocks rose 1.42 million barrels to 24.35 million barrels.
Source: Platts