US crude stocks fell a larger-than-expected 2.699 million barrels the week ended June 24 despite a jump in import levels, an analysis of the oil data released late Tuesday showed.
Analysts polled by Platts had projected a decline of 1.7 million barrels in commercial crude stocks.
At 360.252 million barrels, US crude stocks were 1.231 million barrels above year-ago levels.
While inputs to refineries were unchanged at 15.314 million b/d, imports jumped 595,000 b/d to 9.868 million b/d, with the entire increase concentrated along the Gulf Coast and the Midwest.
Oil balances suggest the decline in crude stocks should have only been 462,000 barrels.
While imports into the Gulf Coast and Midwest were higher, stocks declined in each region. Gulf Coast crude stocks fell by 3.968 million barrels, to 176.277 million barrels, as inputs to refineries in that region edged up 0.6 percentage points to 89.1%. Midwest stocks inched down 221,000 barrels to 99.098 million barrels, but the data suggests there was a build farther north since stocks at Cushing, Oklahoma -- home of the NYMEX delivery point -- decreased by 544,000 barrels, to 37.51 million barrels.
Both gasoline and middle distillate stocks declined, in contrast to expectations for builds. Gasoline stocks fell 91,000 barrels, to 211.844 million barrels, leaving them 8.421 million barrels below year-ago levels.
Analysts polled by Platts had projected a build of 700,000 barrels.
The decline in gasoline stocks was primarily driven by still-soaring demand levels. Implied demand jumped 101,000 b/d to 9.545 million b/d, a very high level given a time that generally sees a lull before the next uptick occurs before the July 4 weekend.
Implied demand for middle distillates also increased, climbing 99,000 b/d to 4.196 million b/d and contributing to a 945,000-barrel decline in stocks.
Analysts had estimated a build of 1.8 million barrels in middle distillates stocks.
At 142.224 million barrels, stocks of middle distillates were 16.485 million barrels below year-ago levels.
