From Platts:
Analysis of U.S. EIA data: U.S. crude oil stocks dip 5.6 million barrels, marking first drop in 11 weeksEarlier today:
U.S. crude oil stocks dropped 5.6 million barrels the week ended November 29 to 385.8 million barrels on a bump-up in refinery run rates, U.S. Energy Information Administration (EIA) data showed Wednesday.
The draw was the first reported by the EIA in 11 weeks, but was far lower than the 12.4 million-barrel decline in crude oil stocks reported late Tuesday by the American Petroleum Institute (API).
The draw narrowed the crude oil stock surplus to the five-year average to 11.7%, or about 40.4 million barrels, for the week ended November 29. The surplus had reached 13.3% the week ended November 22.
Analysts polled by Platts were anticipating a 1.25 million-barrel draw for the week ended November 29 as refiners were expected to be returning from maintenance periods.
Refiners did increase utilization rates, which rose to 92.4% of capacity, from 89.4% of capacity the week ended November 22. The increase was mainly from a ramp-up in U.S. Atlantic Coast (USAC) run rates, which rose 8.1 percentage points to 84.3% of capacity.
Oil Market Analyst Torbjorn Kjus of DNB Bank said the reason for the large stock draw was record-high crude oil for this time of the year, most likely due to exports of refined product to Europe and elsewhere, not domestic demand.
The surge in USAC run rates could be related to the likely end of maintenance at Phillips 66's 238,000 barrels per day (b/d) Bayway refinery in Linden, New Jersey. On November 22, sources said there was talk that the fluid catalytic cracker at the Bayway refinery was coming out of turnaround...MORE
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