U.S. oil stocks down, fuel inventories up sharply

5 Jan 2018   Oil Supply, USA

U.S. crude stocks fell last week as refiners boosted activity to the highest rate since 2005, while stocks of distillates, which include diesel and jet fuel, rose by the most in a year, the Energy Information Administration said on Thursday. Crude inventories fell by 7.4 million barrels in the week to Dec. 29, compared with analysts’ expectations for a decrease of 5.1 million barrels. Refinery activity hit its highest utilization rate since 2005 as refiners kept processing heavy volumes of crude into products, and due in part to year-end tax concerns, analysts said. Crude runs rose by 210,000 barrels per day, EIA data showed. Refinery utilization rates rose by 1 percentage points to 96.7 percent. “Refineries have the incentive to run down stocks to avoid tax payments, which are based on the level of crude oil stocks at the year-end,” said Carsten Fritsch, oil analyst at Commerzbank […]

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