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US Crude Stocks Post 9th Straight Weekly Draw as Exports Rise, TPH Energy Says

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US commercial crude inventories fell by 6.1 million barrels last week, extending a nine-week streak of inventory draws as Cushing crude stocks dropped to a new five-year low, TPH Energy said in a Thursday note.

The inventory decline exceeded market expectations for a 3.6 million-barrel draw and the five-year average draw of 4.4 million barrels.

Commercial crude inventories now stand 1% below year-ago levels and 7% below the five-year average after declining 53.6 million barrels over the past nine weeks.

Cushing inventories fell by 1.1 million barrels to 19.0 million barrels, dropping below the minimum operational level, TPH Energy said.

Higher crude exports helped drive the latest draw despite increases in imports, domestic production and adjustment factors. Crude exports increased by 342,000 b/d, with weekly exports rising 9% from a year earlier and the four-week average climbing 25%.

Crude imports rose by 436,000 b/d, domestic production increased by 13,000 b/d to 13.819 million b/d, and the adjustment factor rose by 107,000 b/d.

Refinery throughput declined by 81,000 b/d from the previous week but remained 1% above year-ago levels.

Ethanol inventories edged up by 0.1 million barrels to a five-year high of 24.6 million barrels, while ethanol production eased week over week but still reached a new five-year high, according to TPH Energy.

Light product inventories increased across all major categories. Gasoline inventories rose by 2.1 million barrels, compared with expectations for a 1.1 million-barrel decline, while distillate inventories increased by 3.1 million barrels versus forecasts for a 1.1 million-barrel draw.

Jet fuel inventories also increased by 1.3 million barrels as single-week demand softened.

TPH Energy said weaker domestic demand and lower net exports contributed to the larger-than-expected builds in gasoline and distillate inventories.

The four-week average for total light product demand slipped to 1% below year-ago levels after being 1% above a week earlier. Gasoline demand also weakened, declining to 3% below year-ago levels from 1% below.

Distillate demand slowed to 3% above year-ago levels from 5% above, while jet fuel demand improved to 1% above year-ago levels after previously remaining flat.

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