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Crude Inventories Extend 10-Week Draw as US Production Slips, TPH Energy Says

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US commercial crude inventories fell by 3.8 million barrels last week, extending a 10-week draw to 57.4 million barrels and outpacing expectations, TPH Energy Research said in a Thursday note.

Commercial crude stocks declined 3.8 million barrels, compared with a consensus forecast for a 2.3 million-barrel draw and the five-year average decline of 1.7 million barrels.

Inventories now sit 3% below year-ago levels and 7% below the five-year average.

Refiners processed 85,000 more crude barrels per day last week, while US oil production slipped by 9,000 b/d to 13.81 million b/d, helping reduce crude inventories, TPH Energy said.

Crude imports fell by 291,000 b/d, while exports dropped by a larger 661,000 b/d. The adjustment factor increased by 567,000 b/d, according to the note.

The four-week average for imports remained 11% below last year, while exports stayed 25% higher.

Ethanol inventories edged up by 100,000 barrels to 24.7 million barrels as production climbed to its highest level in five years, TPH Energy said.

Gasoline inventories declined by 2.3 million barrels, exceeding expectations for a 900,000-barrel draw, supported by stronger weekly demand and higher net exports, the note said.

Distillate inventories increased by 2.5 million barrels, above consensus for a 1 million-barrel build, while jet fuel inventories rose by 1.7 million barrels as weaker net exports boosted stockpiles, according to TPH Energy.

Average light product demand over the past four weeks weakened to 2% below a year ago, down from 1% a week earlier.

Distillate demand shifted to 2% lower than a year ago from 3% higher, while gasoline stayed 3% lower and jet fuel remained 1% higher, TPH Energy said.

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