U.S. Crude Inventories Fall Sharply

Washington, Dhu-AlHijjah 19, 1437, September 21, 2016, SPA — U.S. crude inventories fell sharply last week as refineries reduced output, while gasoline supplies decreased and distillate inventories rose, the government reported Wednesday.
U.S. oil prices spiked nearly 2.5 percent after the Energy Department data and as an oil-services workers strike in Norway threatened to cut North Sea output. West Texas Intermediate (WTI) crude futures were up nearly $1.10, or 2.45 percent, to almost $45.15 a barrel in late-morning trade on the New York Mercantile Exchange.
Crude inventories fell by 6.2 million barrels last week, the department’s Energy Information Administration (EIA) said in its weekly petroleum report, in contrast to analyst expectations of a supply increase. Crude supplies at the Cushing, Oklahoma delivery hub rose by 526,000 barrels, the EIA said.
Refinery crude runs fell by 143,000 barrels per day, EIA data showed. Refinery utilization rates fell by 0.9 percentage point.
Gasoline inventories fell by 3.2 million barrels, about six times bigger than the decline expected by analysts. Supplies of distillates—including diesel, heating oil, and jet fuel—rose by 2.2 million barrels, nearly 10 times bigger than the increase expected by analysts.
U.S. crude imports rose last week by 77,000 barrels per day, the EIA said.
–SPA
18:01 LOCAL TIME 15:01 GMT