A drop in imports helped push U.S. commercial crude oil stocks 847,000 barrels lower the week ended December 12, U.S. Energy Information Administration (EIA) data showed.Analysts surveyed Monday by Platts had expected crude oil stocks to be down 2.5 million barrels.Stocks at Cushing, Oklahoma, the delivery point for the New York Mercantile Exchange (NYMEX) crude oil contract, rose 2.9 million barrels.

Despite the Cushing build and smaller-than-expected draw in total stocks, oil futures jumped on a wave of short covering, with prompt-month IntercontinentalExchange (ICE) Brent and NYMEX crude oil futures rising $3 per barrel after the release of the EIA data.

Crude oil imports fell 564,000 barrels per day (b/d) to 7.1 million b/d, offsetting the impact of less demand from refiners on crude oil stocks.

Net inputs to U.S. refineries decreased 326,000 b/d to 16.301 million b/d. However, the decline comes one week after crude oil runs reached a record high of 16.627 million b/d.

The U.S. refinery utilization rate fell 1.9 percentage points. Analysts surveyed Monday by Platts had estimated the utilization rate would fall by 0.3 percentage point.

Even with the drop, refineries operated at 93.5% of operable capacity -- 2 percentage points higher than at this time last year.

On the U.S. Gulf Coast, the utilization rate moved about 2 percentage points lower to 95.3% of operable capacity. USGC crude oil stocks fell 656,000 barrels to 192.962 million barrels.

The biggest draw occurred on the U.S. Atlantic Coast (USAC), where stocks dropped 1.577 million barrels to 11.813 million barrels.

GASOLINE STOCKS RISE

U.S. gasoline stocks rose 5.25 million barrels as U.S. refineries continue operating at high levels, pushing more products into the market, according to the EIA data.

Analysts had projected gasoline stocks would increase 2.3 million barrels.

Over the last two reporting periods, gasoline stocks have increased 13.4 million barrels on account of strong crude oil runs.

Stocks on the USAC -- home to the New York Harbor-delivered RBOB contract -- rose 1.362 million barrels to 53.717 million barrels. The region remains at about a 3% deficit to the five-year average.

The gasoline build was largest in the U.S. Midwest (USMW), where gasoline stocks the week ended December 12 rose 2.087 million barrels to 47.414 million barrels. Stocks in the region are more than 5% below the five-year average.

U.S. distillate stocks fell 2.11 million barrels to 115.955 million barrels, according to EIA. Analysts had expected an increase of 670,000 barrels.

The draw was led by the USAC, where combined low- and ultra-low-sulfur diesel (ULSD) stocks fell 1.478 million barrels.

At 26.858 million barrels, USAC diesel stocks were about 1% above the EIA five-year average, the smallest surplus since the week ended June 13. As recently as October 17, USAC combined stocks stood 34% above the five-year average.

USMW combined diesel stocks rose 43,000 barrels to 24.742 million barrels -- a 7% deficit to the five-year average.

USGC combined low and ULSD stocks increased 1.086 million barrels to 36.371 million barrels. Compared with the five-year average, USGC combined stocks flipped from a deficit to a 3.8% surplus.

U.S. distillate production was essentially unchanged, sliding 17,000 b/d to 5.214 million b/d.
Source: Platts