U.S. crude, distillate stocks fall, gasoline builds: EIA

Inventories in focus ahead of OPEC+ meeting

U.S. crude oil, distillate, and gasoline inventories for the week ended Dec. 16, 2022:

**Crude oil** inventories fell by 5.9 million barrels, compared with analysts' expectations for a decrease of 2.2 million barrels.

**Distillate stockpiles**, which include diesel and heating oil, decreased by 1.2 million barrels, versus expectations for a build of 1 million barrels.

**Gasoline inventories** rose by 1.1 million barrels, against expectations for a 700,000-barrel increase.

The Energy Information Administration (EIA) reported the data as part of its weekly petroleum status report.

EIA petroleum report highlights

Crude oil inventories fell to 418.4 million barrels, the lowest level since November 2021.

Distillate stocks declined to 117.4 million barrels, the lowest since January 2023.

Gasoline inventories increased to 227.1 million barrels, the highest level since June 2023.

Refinery utilization rates rose by 1.2 percentage points to 91.6%.

Crude oil imports fell by 488,000 barrels per day to 6.5 million barrels per day.

Market implications

The larger-than-expected draw in U.S. crude oil inventories could support prices in the near term. The market will also be closely watching the upcoming OPEC+ meeting for cues on production policy.

The decline in distillate stocks is also supportive for prices, as distillates are in high demand during the winter months for heating.

The build in gasoline inventories is likely due to the seasonal decline in demand. However, any further increases in gasoline inventories could put downward pressure on prices.

OPEC+ meeting in focus

OPEC+ is scheduled to meet on Dec. 22, 2022, to discuss production policy. The group is widely expected to keep output steady, but any surprises could have a significant impact on oil prices.