Home / Energy / U.S. crude stockpiles fall 4.2 mln barrels in latest week – EIA

U.S. crude stockpiles fall 4.2 mln barrels in latest week – EIA

NEW YORK – U.S. crude oil inventories declined far more than expected last week, while gasoline stocks decreased amid robust demand for the motor fuel, data from the Energy Information Administration (EIA) showed on Wednesday.

Crude inventories fell 4.2 million barrels to 459.68 million in the week to July 24, more than twenty times analysts’ expectations for a decrease of 184,000 barrels.

U.S. crude imports fell last week by 396,000 barrels per day (bpd). At 2.7 million barrels for the week, that is more than half the week’s decline in total U.S. crude oil inventories.

Crude futures turned higher and rallied after the release of the EIA report.

U.S. crude was up $1.02 at $49 a barrel at 11:13 a.m. EDT (1513 GMT), well above its session low of $47.39.

Brent crude was up 58 cents at $53.88, having dropped to $52.51 earlier in the session.

Related: U.S. crude oil stockpiles rise for first time since April – EIA

“The draw in crude stocks brought upward pressure in the market,” said Gene McGillian, senior analyst at Tradition Energy in Stamford, Connecticut.

Crude stocks at the Cushing, Oklahoma, delivery hub fell 212,000 barrels, the EIA said.

Refinery crude runs fell by 108,000 bpd, EIA data showed. Refinery utilization rates slipped 0.4 percentage point to 95.1 percent of capacity.

Gasoline stocks dropped by 363,000 barrels, compared with analysts’ expectations in a Reuters poll for a 512,000-barrel gain.

“The report was marginally bullish due to the large crude oil inventory decline and the robust gasoline demand,” said John Kilduff, partner at Again Capital LLC in New York.

Averaging 9.51 million bpd over the past four weeks, U.S. gasoline demand was up 6.2 percent from the year-ago period, the EIA said in its report.

Total refined product demand in the United States during the last four weeks was at 20.09 million bpd, up 3.8 percent from the same period in 2014.

This article was from Reuters and was legally licensed through the NewsCred publisher network.

68 comments

  1. LOL no — less than 1% change in stored inventory– and a 2% change in price— long way to go–

  2. Production is way down to. It’s going to be dropping off storage a lot quicker now. Oil will start to climb quickly. Anyone worried about Iran bringing oil to a full market. Don’t worry because I guarantee the have already been dumping in the black market. 90 oil before years end!

    • Not going to happen !

    • Will see. Chevron california is already ramping up

    • Hope so shell just announced A new Round of layoffs. Starting in September. as well as Halliburton and Baker Hughes. BP is Laying people off Also and the end of the summer. Believe me man I hope it picks up I am from Texas and it has Slowed down about 40%. But the world bank predicts it will take 12 to 16 months for oil to pick up to the mid 60s.

    • Bill what will you do when oil does climb again? You going to apologize for being so negative and wrong about everything you’ve assumed? The numbers are there. OPEC NEEDS high oil to balance their budgets. That’s the difference between us and them. Our government doesn’t rely on oil like they do. You’re in for a rude awakening once you figure it out.

    • I was laid off too because of the drop, it’s hurting us greatly because of it. I’m in Houston and there has been major layoffs from big oil and gas companies, and now Shell announced too..

    • I pray your right Ron. I’m a consultant for a large oil company operating in west Texas. And I’m stressing everyday. But I like what your saying. Thanks god bless everyone. And I pray everyone laid off finds a job soon.

    • I am in the middle of the Bakken Oilfield she is about dead here and don’t think we will c 90 dollar oil for awhile thank you mr Obama

    • Production isn’t down. It’s up still.

    • This should help clear up any confusion that one may have about the money needed for the infrastructure of these oil producing country’s. Saudi just borrowed $6 billion..yes that’s not a lot of money to them and yes it’s borrowed from production but still it’s a sign that oil is far to cheap for them to continue operating at these prices.

  3. Production is way down? Where?

  4. Wait until the slingshot effect comes from all those rigs getting stacked out… those inventories will disappear quick.

  5. The trend for west Texas Intermediate is really looking positive / sarcasm

  6. The oil market is like a big ship . It turns slow . But it’s definitely turning up . The trend is oil is no longer being over produced. We are no longer positive storing it. Demand is coming back. Production doesn’t start back up overnight. Kelly , that’s not sarcasm. It’s fact.

  7. Wow it fell! North Dakota still a poo hole!

  8. Hope it stays low to benefit the whole country

    • Low oil doesn’t benefit anyone. Why is your gas still expensive ? The energy sector provides many jobs and investment in communities.

    • Yeah because you having to down an extra 20 bucks a week is more important than a mans total income to support his family…

    • You guys need to get out of oil industry or quit crying about it. You make more in 6 months than most people do in a year.

    • Why get out? The cry baby’s that don’t make enough should better there situation. Not cry about wanting 15 an hour to fudge up a meal at McDonald’s.

    • Yes, but these guys bust their asses too,long hours and days away from family, and no I don’t like paying 4 dollars a gallon for gas but I will because it keeps people working! And the prices should be a lot lower than they are for as many people that have lost thier jobs including myself! No I’m not out on a rig but because of the economy in now out of work as well as a lot of my friends and family, who do work the rigs!!! So I’m happy to be called Oilfield Trash,just get our jobs back!!!!

    • And we also work harder than most people to earn that money.

    • Without us going after oil the world will stop. Gas rubber diesel plastic all come from oil. Without it products cant be made or transported to people and stores.

    • We don’t work 40 hours per week Randy Rolland. Most of us get one weekend a month off .

    • I don’t work 40 hrs a week either Johnny A Smith. Come follow me into a house that’s fully involved in fire. I only get 1 full weekend a month off. You boys ain’t the only people that work.

    • If you don’t support the oilfield get off this page! Julianna

    • The only bad remark comes from a woman. Not surprised. I support oil industry. Worked there when I was younger. If your an unemployed oil field worker its because of the greed of your company. They don’t want to get the oil and make a profit. They will lay people off and wait on oil prices to climb so they can make hundreds of millions in profit quarterly.

    • I’ll follow you in any day brother, Firefighter/Emt for 10 years.

    • Nice to here from a brother FF Rob McCree. 28 1/2 years on the job. We earn our money also as you no. FF don’t complain like oil field workers. We show up and do a job.

    • My brother and I own 4 semis so our main cost is fuel but even I know that the price of fuel needs to stay around 3.50 to keep the economy going that small savings is wrecking the grain market and everything else to fallow

    • Randy Rolland who’s crying about it. We are having a descussion.

    • Firefighters make a great living. But in Kern county, California where oil , gas and agricultural are the main industry. Guess what if they aren’t paying taxes to our county and city . Firefighters and other tax funded jobs get cut.

    • Good keep it low so gas is cheaper

    • So few benefits from oilfield
      Most of the people benefits from having cheaper gas prices

    • If a 1$ a gallon increase in the price at the pump makes someone go broke, they probably shouldn’t have chosen fast food as a career. Americans need to live within their means, and stop blaming others ( oil companies) for their woes.

    • We in the patch need to realize we are part of a commodities market. I hope for high prices, like the rest of you. But you cannot blame others for wanting cheap oil.

    • Luis Garcia you don’t have a clue . Gas is just a small part of oil . Plastics , rubber , anything synthetic pharmaceutical industry. Guess what? It has to be priced high enough to continue exploration. If not and we don’t replace wells . When demand goes up you are going to be paying 10 dollars a gallon .

    • To many people are short sided in their thinking or lack of knowledge.

    • Well idk about you guys but I’d rather spend money on something I can use rather than put it in my tank every week. Idk maybe its just me.

    • That’s a nice car in your pic there Derrick Mooridian, maybe you should consider buying something cheaper on fuel if that’s what your worried about…

    • Forrest if fuel jumps a dollar a gallon there’s going to be a whole lot more people hurting than just fast food workers. The cost of you being able to walk into the store and buy what you need will go up because the fuel surcharge will increase as well as rates for freight. It hurts everyone. I was hauling sand but had to come out here to haul freight to pay for my truck.

    • I work in the field.. I agree oil needs to be up, but it wouldn’t hurt to have a happy medium.

  9. Hope it stays below $70!

  10. Exxon baytown goes through that in a few days lol

  11. Well than lets frac this! Yee Haa!

  12. Ron I don’t know where you think demand is on the rise because it’s falling. China’s stock market is giving us fits here, people are tepid to spend money since we have the lowest rise in wages in quite some time. The demand season just ended so as much as I wish it would rise again, it looks like oil will keep dropping for a while before it begins to rise. More and more oil coming out of the ground, companies starting to refrac existing wells and most of the energy companies have been hedged at about 90.00 and that is about to end at the end of the fiscal year. Interest rates will probably go up soon so the interest payments will be due. It’s not looking good right now.

  13. We’re still busy in west tx, thank god, sitting on a frac job

  14. Take a look at Saudi Arabia’s supplies and tell me there isn’t going to be that “sling shot” effect. They will be out of stored oil by 2018 if they continue what they are doing.

  15. I work for an oilfield equipment company as a diesel tech/ field service tech, most of the people complaining about oil prices being high are the ones that work non skilled labor jobs and live way beyond their means. Don’t get get me wrong the cheap gas prices are nice but when it starts to affect my paychecks that’s when I get pissed about people talking crap about the oil/gas industry. Imo those folks can give up their cars, cell phones, computers, etc. everything produced these days comes from petroleum

  16. Well I’m in Houston and I have seen a lot of crude oil haulers laid off including many of my coworkers. It has been slow for months and it isn’t looking good either.

  17. Production is up in certain areas. I haul crude oil. We are screaming for help. Future operations is in trouble. The only reason the supplies are going down is due to lower prices and more people hitting the road.

  18. Ron Emms, you speak the truth. People who are not in the oil and gas business have no clue how it. Works. They read analysts reports who try and run down or up the forecasted prices for certain markets. Also, you do not stock pile 1200 (rigs and counting) in yards across the country and expect current wells to keep up with demand. As far back as the 30s prices have gone up and down only to see it go back up 3times what it fell to. It’s a cyclical business that keeps repeating itself. Iran has been selling on the black market thus, won’t hurt us as much as people think. We all know that the shale plays have a certain decline rate and it’s a matter of time before the analysts figure out our inventories are alarmingly low for 1200 rigs being out of service. May not be $90 by year end but it won’t be below $75!!!!