US crude and fuel inventories fall on higher demand, EIA says

U.S. crude oil and fuel inventories fell last week as refining activity and demand rose, the Energy Information Administration (EIA) said on Wednesday.

Crude inventories fell by 5.8 million barrels to 415.1 million barrels in the week ending June 20, the EIA said, exceeding analysts' expectations in a Reuters poll for a 797,000-barrel draw.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 464,000 barrels in the week, the EIA said.

"This week the report is about supply and demand. Gasoline demand was up, and a substantial drawdown in stocks is going to give the market chance to stabilize after all the geopolitical reports," said Phil Flynn, a senior analyst with Price Futures Group.

Oil prices rose following the larger-than-expected decline in stockpiles. Global benchmark Brent crude futures were trading at $67.97 a barrel, up 83 cents, by 10:55 a.m. EDT (1455 GMT), while U.S. West Texas Intermediate crude (WTI) rose 90 cents to $65.27 a barrel.

Refinery crude runs increased by 125,000 barrels per day, the EIA said, while utilization rates rose by 1.5 percentage points to 94.7% of total capacity, its highest level since July 2024.

Gasoline stocks fell by 2.1 million barrels to 227.9 million barrels, also more than analysts' expectations for a 381,000-barrel build.

Gasoline supplied, a proxy for demand, rose 389,000 bpd last week to 9.7 million bpd, its highest since December 2021.

Distillate stockpiles, which include diesel and heating oil, fell by 4.1 million barrels to 105.3 million barrels, versus forecasts for a 410,000-barrel rise, the data showed.

Net U.S. crude imports rose last week by 531,000 bpd, the EIA said.