US crude stockpiles fall, fuel builds as refiners hike output, EIA says
NEW YORK: U.S. crude oil stockpiles fell last week as oil refiners ramped up production with the start of the summer driving season, while fuel inventories rose amid weaker demand, data from the Energy Information Administration showed on Wednesday.
Crude inventories fell by 4.3 million barrels to 436.1 million barrels in the week ended May 30, the EIA said, compared with analysts' expectations in a Reuters poll for a 1 million-barrel draw.
Refinery crude runs rose by 670,000 barrels per day, the EIA said, while utilization rates jumped 3.2 percentage points to 93.4% of total capacity.
Gasoline stocks rose by 5.2 million barrels in the week to 228.3 million barrels, the EIA said, compared with expectations for a 600,000-barrel build.
Product supplied of gasoline, a proxy for demand, fell by 1.2 million barrels per day to 8.3 million barrels, despitethe start of the summer driving season after the Memorial Day holiday weekend, typically a time of increased demand.
Saudi Arabia cuts July oil prices to Asia to 4-year low after OPEC+ supply boost
The lower demand number raised some concerns.
'There was a strong increase in refinery demand for crude, resulting in a large crude draw,' said Giovanni Staunovo, an analyst with UBS. 'But post-Memorial Day, the strong supply increase with weaker implied demand resulted in large refined product inventory increases.'
Immediately following the data, U.S. crude prices pared gains and last traded near flat at $63.40 a barrel.
Distillate stockpiles, which include diesel and heating oil, rose by 4.2 million barrels in the week to 107.6 million barrels, versus expectations for a 1 million-barrel rise, the EIA data showed.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 576,000 barrels, the EIA said.
Net U.S. crude imports rose last week by 389,000 bpd.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
UBS hires tech bankers Larsen, Michlovich from BofA in New York
NEW YORK: UBS hired two technology investment bankers in New York from Bank of America, according to a memo seen by Reuters on Thursday. David Larsen will join the Swiss bank in September, to focus on application software, according to the memo by Laurence Braham, the global co-head of technology for UBS' investment bank. UBS agrees private credit tie-up with General Atlantic The lender also hired Rob Michlovich as a managing director focused on industrial and supply chain software, who starts in July. He previously advised BofA clients in industrials and tech. 'David and Rob collectively bring over 30 years of banking experience and have advised clients on numerous high-profile M&A and capital markets transactions,' Braham wrote. 'The software sector represents a significant global fee opportunity for the firm.'
Business Recorder
4 hours ago
- Business Recorder
China's exports likely slowed in May amid trade uncertainties
BEIJING: Growth in China's exports likely slowed in May despite a lowering of U.S. tariffs on Chinese goods, as the fallout from the still-unresolved trade war and uncertainties in Sino-U.S. ties weighed on shipments. Outbound shipments are projected to have risen 5.0% year-on-year in value terms last month, according to the median forecasts of 20 economists polled by Reuters. That compares with an 8.1% jump in April. Imports are forecast to drop 0.9% in May from the previous year in value terms, widening from a 0.2% dip in April. The global trade war and the swings in China-U.S. trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller coaster ride. An hour-and-a-half-long phone call between U.S. President Donald Trump and Chinese leader Xi Jinping late Thursday kept the lid on tensions but left key trade issues such as Beijing's control on rare earth exports and Washington's curbs on chip-related exports to further talks. In mid-May, China and the United States struck a 90-day truce in their bruising tariff war and walked back most of the triple-digit levies they heaped on each other's goods, which had taken effect in early April. Those tariffs, as well as uncertainties surrounding the global trade order after the Trump administration ordered a 90-day pause to its 'reciprocal tariffs' on other trade partners, had accelerated China's exports in March and April, as factories rushed out shipments to the U.S. and overseas manufacturers. The lowering of U.S. tariffs on China, however temporary, was welcome news to China's policymakers as they seek to shore up an economy reliant on exports and beset by lacklustre domestic demand and sagging prices. Economists polled by Reuters appear divided on how the turnabout from the Geneva trade talks would impact China's overall exports last month, with estimates ranging from a 9.3% growth to a 2.5% drop. South Korea exports fall as tariffs hit US, China shipments The tariff truce might trigger a new round of frontloading and reduce the urgency for the Chinese government to 'roll out a sizable stimulus package and start some necessary structural reforms', Nomura analysts wrote in a report on May 23. The Nomura analysts estimate that average U.S. tariffs on Chinese imports could remain 'hefty at about 42%' even without further hikes, and expect China's export growth to slow down sharply in the second half of the year. China's first-quarter economic growth beat expectations, but any cheer was overridden by persistent strains in China-U.S. ties. Factory activity data for May shows Chinese manufacturers may have already felt the tariff pains. The official manufacturing purchasing managers' index (PMI) shrank for a second month in May, while the gauge in a private-sector survey shrank for the first time in eight months. The central bank last month cut benchmark lending rates to lessen the impact of the trade war on the economy, and lowered the ceiling for deposit rates to offset margin pressure on banks and prompt savers to spend or invest more. China's May trade surplus is forecast at $101.3 billion, up from $96.18 billion in April.
Business Recorder
6 hours ago
- Business Recorder
Gold rises as weak US data outweighs optimism from Trump-Xi call
Gold rose on Friday and was set for weekly gains, as a spate of soft U.S. economic data outweighed initial optimism over U.S. President Donald Trump's call with his Chinese counterpart Xi Jinping, while investors awaited U.S. payroll data. Spot gold was up 0.5% at $3,368.49 an ounce, as of 0340 GMT. Bullion has gained 2.5% for the week so far. U.S. gold futures climbed 0.5% to $3,391.40. Trump and Xi engaged in a rare leader-to-leader call on Thursday, addressing escalating trade tensions and disputes over critical minerals, though key issues remain unresolved. 'Some of the initial enthusiasm for risk appetite following the Trump-Xi call has started to wear off, which has enabled gold to creep higher,' said Tim Waterer, chief market analyst at KCM Trade, adding, as Trump's optimistic take masked recent weak U.S. economic data earlier. The number of Americans filing new applications for unemployment benefits increased to a seven-month high last week. Investors are now awaiting U.S. nonfarm payroll data due at 12:30 GMT, after a slew of data throughout this week highlighting labor market softness. Economists polled by Reuters forecast nonfarm payrolls increased by 130,000 jobs in May, down from 177,000 in April, while the unemployment rate is expected to remain steady at 4.2%. 'The upcoming NFP release could be the catalyst for a breakout should the data produce a significant miss on either side of expectations,' Waterer said. Gold soars significantly by Rs4,300/tola in Pakistan Fed policymakers indicated that inflation remains a greater concern than labor market cooling, suggesting a prolonged hold on monetary policy adjustments. Gold, often seen as a safe-haven asset, tends to perform well during economic uncertainty and in low-interest-rate environments. Spot silver fell 0.4% to $35.99 per ounce, still hovering near a 13-year high, while platinum rose 1.7% to $1,149.88 and palladium was up 0.8% at $1,014.31. All three metals were headed for weekly gains.
