U.S. oil and gasoline inventories edged lower last week as refineries processed more crude and seasonal demand for motor fuel remained strong, according to data from the U.S. Energy Information Administration for the week ending July 10.
Crude inventories decreased by 1.7 million barrels to 409.7 million barrels, a smaller draw than analysts had predicted. The consensus view had anticipated a 2.6 million-barrel decline.
Stockpiles at the Cushing, Oklahoma delivery hub rose by 430,000 barrels during the reporting week, the EIA said.
Refinery operations increased, with crude runs climbing by 99,000 barrels per day. Utilization of refining capacity also rose, up 0.4 percentage points to 96.2% for the week, reflecting higher processing amid the peak summer driving season.
"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.
On the products side, gasoline inventories fell by 1.5 million barrels to 210.5 million barrels. This draw exceeded the analyst expectation of a 760,000-barrel decline.
Measured demand, as proxied by product supplied of finished motor gasoline, eased slightly: product supplied dropped by 1,000 barrels per day to 8.84 million barrels per day in the week, according to the EIA figure.
Market reactions were limited. U.S. gasoline futures initially rose to trade at $3.25 per gallon following the report but later relinquished most of their gains. Brent crude, U.S. crude futures, and U.S. ultra low sulfur diesel futures showed little change after the data release.
The weekly EIA snapshot shows higher refinery throughput supporting product draws even as releases from strategic reserves and slower export flows mitigated the overall reduction in crude stocks. The data reflect the interplay between seasonal demand, refinery activity, and flows in and out of U.S. inventories.