EIA: US Crude Stockpiles Fall

US crude stocks fell unexpectedly last week as refineries, enjoying strong margins due to higher fuel prices, ramped up output ahead of the winter heating season, the Energy Information Administration said on Wednesday.

Crude inventories dropped by 2.101 million barrels last week, compared with analysts’ expectations for a build of 1.398 million barrels.

Distillate stockpiles, which include diesel fell 824,000 barrels in the week against expectations for a draw of 1.229 million barrels, the EIA data showed.

Gasoline inventories fell 708,000 barrels last week, the EIA said, compared with expectations for a draw of 575,000 barrels.

Stephen Nalley, Acting EIA Chief testified before Senate Energy and Natural Resources Committee hearing, Tuesday, that market forces, rather than specific policies taken by the Biden administration, were to blame for high gasoline prices.

“World consumption of petroleum is recovering faster than production, which is resulting in steady draws on global oil inventories and upward pressure on prices,” Nalley said.

Nalley suggested that prices are high because oil supply is not recovering as quickly as demand. A contributor to this imbalance, he said, is less enthusiasm from investors amid the economic downturn.