Highlights
A dip in oil imports and seasonal demand for distillates helped drain 4.9 million barrels from crude inventory in the Dec. 18 week to 327.5 million barrels. Distillate inventories fell a steep 3.1 million barrels reflecting demand for home fuel and despite an increase in distillate production. Domestic refineries produced less gasoline in the week at the same time that gasoline imports were down, making for a 0.9 million barrel draw in gasoline stocks despite no change in what is still weak driving demand. Refineries, hurt by thin margins, continue to operate at very mild rates, at 80 percent in the latest week. An important offset to the headline draws is another build at the WTI delivery point of Cushing, Oklahoma, up 0.6 million barrels to a swollen 34.7 million barrels. Oil spiked $1 to $76.50 in immediate reaction to the results before quickly giving back half the gain.