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US Crude Inventories Drop 8 Million Barrels, Cushing Hits New 5-Year Low, TPH Says

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US commercial crude inventories fell by 8 million barrels last week, pushing stocks 1% below year-ago levels and 4% below the five-year average, TPH Energy said Thursday.

Cushing crude inventories declined by 600,000 barrels to 22.4 million barrels, marking another five-year low, the firm said.

Higher crude exports supported the draw as outbound shipments increased by 1.43 million b/d, outweighing a 1.19 million b/d increase in imports, TPH said.

The firm said the inventory decline also reflected a 349,000 b/d drop in the adjustment factor and an 8,000 b/d decrease in domestic production to 13.707 million b/d.

Four-week average crude imports remained 4% below year-ago levels, while four-week average crude exports increased 42% from a year earlier, according to TPH.

Refiners reduced crude processing rates by 90,000 b/d, leaving refinery runs 1% below year-ago levels, the firm said.

Ethanol inventories fell by 400,000 barrels to 24.6 million barrels as exports strengthened, although inventories remained at a seasonal high while production reached another five-year high, TPH said.

Gasoline inventories increased by 3.4 million barrels and distillate stocks rose by 1.5 million barrels, missing consensus forecasts for declines of 2.5 million barrels and 2 million barrels, respectively, TPH said.

Jet fuel inventories also climbed by 400,000 barrels, although gasoline, distillate and jet fuel demand remained stronger than year-ago levels despite weaker week-over-week consumption, the firm said.

The four-week average for light product demand improved to 1% above year-ago levels from 1% below previously, while net export growth slowed to 60% from 72%, with gasoline demand at 1%, distillate at 1% and jet fuel at 0%, TPH said.

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