US commercial crude stocks unexpectedly rose 3.96 million barrels to total 358.202 million barrels the week ending July 22 with imports climbing, an analysis of the oil data released late Tuesday by the American Petroleum Institute showed.
Analysts polled by Platts had projected a draw of 2.3 million barrels in crude stocks.
Supply/demand balances suggest there should have been a 4.641 million barrel draw.
Crude imports jumped 452,000 b/d to 9.162 million b/d with the increase concentrated on the Atlantic and West coasts. Yet, crude stocks increased 8.178 million barrels to 178.972 million barrels on the Gulf Coast with a decline in inputs to refineries contributing to the stocks build. Crude runs on the Gulf Coast were down 237,000 b/d to 8.095 million b/d while imports were up just 9,000 b/d at 5.114 million b/d.
Distillate stocks climbed 2.907 million barrels to 149.33 million barrels, leaving inventories 12.936 million barrels below year-ago levels. Higher imports and increased production were behind the build in middle distillates as refiners sought to cash in on handsome margins.
Production of middle distillates climbed 119,000 b/d to 4.647 million b/d while imports rose 50,000 b/d to 219,000 b/d.
While production of middle distillates was higher, output of gasoline dipped 57,000 b/d to 9.275 million b/d and contributed to a drop in stocks of 639,000 barrels.
Analysts polled by Platts had projected a build in gasoline stocks of 800,000 barrels. At 209.671 million barrels, gasoline stocks were 13.071 million barrels below year-ago levels.
