Distillate stockpiles, which include diesel and heating oil, rose by 4.6 million barrels in the week to 108.2 million barrels, versus expectations for an 84,000-barrel rise, the EIA data showed.
Net U.S. crude imports fell last week by 399,000 bpd, the EIA said.
Refinery runs rise while exports and gasoline demand remain mixed
U.S. exports climbed by 459,000 barrels per day to , EIA data showed, but remained well below the peak seen in May.
3.7 million bpd
5.9 million bpd
Refinery crude runs rose by 99,000 bpd, the EIA said, while refinery utilization rates rose by 0.4 percentage points in the week to 96.2%.
"Ongoing strength in refining activity amid peak summer driving demand has encouraged a draw to crude inventories, although its magnitude has been stymied by ongoing SPR releases and a slowing pace of crude exports," said Matt Smith, director of Commodity Research at Kpler.
U.S. gasoline stocks fell by 1.5 million barrels in the week to 210.5 million barrels, the EIA said, compared with analysts' expectations in a Reuters poll for a 760,000-barrel draw.
Product supplied of finished motor gasoline, a proxy for demand, eased by 1,000 bpd to 8.84 million bpd in the week.
U.S. gasoline futures edged higher to trade at $3.25 a gallon after the data but largely gave up their gains after.
Brent, U.S. crude futures and U.S. ultra-low-sulphur diesel futures largely did not react to the data.
"Gasoline demand was just okay for this time of year. We keep seeing sub 9 million barrels so that took away from any of the report's bullishness," said John Kilduff, a partner at Again Capital.
EIA says crude and gasoline stocks fell as refiners boosted processing
U.S. oil and gasoline stocks fell last week, the Energy Information Administration said on Wednesday, as refiners stepped up their crude processing and gasoline demand remained sturdy during summer driving season.
Crude inventories fell by 1.7 million barrels to 409.7 million barrels in the week to July 10, the EIA said. That was smaller than the 2.6 million-barrel draw forecast by analysts polled by Reuters.
Total crude inventories, including commercial stocks and those in the government's emergency reserve, have fallen by nearly 129 million barrels since the start of the U.S.-Israeli war on Iran to 726.17 million barrels, the lowest level since 1984.
Meanwhile, crude stocks at the Cushing, Oklahoma, delivery hub rose by 430,000 barrels in the week to 20 million barrels, the level considered to be the minimum operational requirement for the flagship storage hub, the EIA said.
Total inventories of oil and petroleum products built for the first time in nearly four months, as higher prices for U.S. crude oil and fuel have cut into export demand, UBS analyst Giovanni Staunovo said.
XLE•
