U.S. commercial crude oil stocks fell 905,000 barrels to 395.57 million barrels during the reporting week ended August 29, U.S. Energy Information Administration (EIA) data showed.Analysts surveyed by Platts on Tuesday had been expecting a larger, 2 million-barrel draw. U.S. West Coast (USWC) stocks fell the most, down   1.7 million barrels to 51.8 million barrels the week ended August 29 amid a 56,000 barrels per day (b/d) increase in crude oil runs, which rose to 2.5 million b/d last week.

The draw comes amid a 117,000 b/d rally in USWC imports, which rose to 1.25 million b/d.

Despite the outright decline, crude oil stocks on the U.S. Gulf Coast (USGC) rose 659,000 barrels to 189.75 million barrels the week ended August 29, marking the first weekly increase since the reporting week ended August 8.

USGC crude oil runs fell 150,000 b/d to 8.6 million b/d, coming off a record 8.75 million b/d for the week ended August 22, EIA data shows. The USGC accounts for more than 50% of total U.S. operable capacity.

The cut in USGC runs helped push regional refinery utilization rates 0.6 percentage point lower to 95.6% of capacity. Total U.S. run rates fell 0.2 percentage point to 93.3% of capacity.

Analysts had been expecting a 0.7 percentage-point decline.

Weaker imports likely limited the build on the USGC, where imports fell 172,000 b/d to 3.51 million b/d. Imports from Saudi Arabia were largely flat, up 8,000 b/d to 840,000 b/d, but continue to trend lower. Saudi imports have fallen steadily from the near-2 million b/d seen in early April, EIA data shows.

Meanwhile, imports from Canada continued to soar the week ended August 29, rising 125,000 b/d to 2.96 million b/d, a record for weekly data. The previous high was 2.95 million b/d in the week ended August 8.

Most Canadian barrels head to the U.S. Midwest, where crude oil stocks rose 399,000 barrels to 86.82 million barrels despite a slight uptick in runs of 25,000 b/d to 3.65 million b/d the week ended August 29.

Stocks at Cushing, Oklahoma -- delivery point for the New York Mercantile Exchange (NYMEX) crude oil futures contract -- fell 385,000 barrels to 20.28 million barrels.

U.S. GASOLINE STOCKS FALL

U.S. gasoline stocks fell 2.32 million barrels to 210 million barrels the week ended August 29, in line with analysts' expectations.

Implied demand* for U.S. gasoline jumped 380,000 b/d to 9.48 million b/d. The four-week moving average shows implied demand held above 9 million b/d for the fifth consecutive reporting week.

Stocks on the U.S. Atlantic Coast (USAC) -- home to the New York Harbor-delivered NYMEX RBOB contract -- fell 590,000 barrels the week ended August 29. But at 56.96 million barrels, USAC stocks are still relatively well-supplied, sitting more than 2% above the EIA five-year average.

USAC imports rose 258,000 b/d to 700,000 b/d, the highest since the week ended May 30, EIA data shows.

USGC gasoline stocks tightened the week ended August 29, having fallen 1.74 million barrels to 73.46 million barrels. USWC gasoline stocks fell 725,000 barrels to 26.38 million barrels, putting them more than 5.5% below the five-year average.

U.S. distillate stocks rose 605,000 barrels to 123.4 million barrels the week ended August 29, counter to analysts' expectations of a 1.2 million-barrel draw.

The build comes despite a 302,000 b/d increase in implied demand, which rose to 3.95 million b/d.

USGC combined low- and ultra-low-sulfur diesel (ULSD) stocks fell 322,000 barrels to 33.35 million barrels, while stocks on the USAC held largely flat.

At just over 32 million barrels, USAC low- and ULSD stocks are more than 10% above the five-year average.

*Implied demand is the amount of product that moves through the U.S. distribution system, not actual end consumption.
Source: Platts