U.S. commercial crude stocks fall 3.1 million barrels in third weekly decline

EIA estimates U.S. crude output at 13.3 million barrels a day

U.S. commercial crude oil inventories excluding the Strategic Petroleum Reserve fell 3.1 million barrels to 412.5 million barrels in the week ended Oct. 16. The Energy Information Administration released the data Wednesday, showing a third consecutive weekly decline and a much larger reduction than the 300,000-barrel drop expected by analysts in a Wall Street Journal survey.

The EIA said commercial crude stocks were about 3% below the five-year average for the time of year. The third straight inventory decline occurred as both U.S. production and imports fell.

Oil held in the Strategic Petroleum Reserve fell by 300,000 barrels to 282.7 million barrels. Stocks at Cushing, Okla., the Nymex delivery hub, increased by 987,000 barrels to 27.6 million barrels.

The EIA estimated U.S. crude oil production at 13.3 million barrels a day, down 410,000 barrels a day from the week before. Production continued to be affected by offshore shut-ins tied to Hurricane Isaias, which made landfall Oct. 9. The Marine Minerals Administration said lost Gulf production had been largely restored by Wednesday of last week.

Crude oil imports fell by 291,000 barrels a day to 5.8 million barrels a day, while exports fell by 1.1 million barrels a day to 3.4 million barrels a day. The EIA report listed the lower production and imports alongside the larger-than-expected reduction in commercial crude inventories.

Refineries ran at 93.4% of capacity, down from 93.5% the week before. Crude input to refineries rose by 34,000 barrels a day to 16.6 million barrels a day, although analysts had forecast refinery runs would edge up by one-tenth of a percentage point.

Gasoline inventories fell by 3 million barrels to 205.3 million barrels and were 5% below the five-year average, the EIA said. Gasoline demand rose by 575,000 barrels a day to 9 million barrels a day. The Wall Street Journal survey had expected gasoline stocks to remain unchanged.

Distillate fuel stocks increased by 1.7 million barrels to 104.3 million barrels, compared with expectations of a 1.3 million-barrel draw. The EIA said distillate stocks were 9% below the five-year average for the time of year. Distillate demand fell by 591,000 barrels a day to 3.7 million barrels a day.