WTI futures hold ground after EIA inventory data

West Texas Intermediate crude retained daily gains after data by the Energy Information Administration showed a larger-than-expected draw in US crude stockpiles. However, both major refined product categories saw significant builds, while domestic crude output rose to the highest in more than three decades. Brent held ground as well.

January US crude was up 1.38% to trade at $67.80 per barrel at 15:54 GMT. Prices held in a daily range between $68.05 and $66.88 a barrel. The contract settled 3.07% lower on Tuesday at $66.88, a day after it reached its lowest since July 2009, scoring its biggest one-day rally since August 2012.

Meanwhile on the ICE, Brent for delivery in the same month stood at $71.11 a barrel, having shifted in a daily range between $71.46 and $70.30. The European crude benchmark fell 2.76% yesterday to $70.54, settling at a premium of $3.66 to WTI. The gap narrowed to $3.31 on Wednesday.

The Energy Information Administration reported that US crude oil inventories fell by 3.689 million barrels in the seven days through November 28th to 379.3 million, surpassing analysts expectations for a 1.75-million-barrel drop. Stockpiles at the Cushing, Oklahoma storage hub slid to 23.9 million barrels from 24.6 million a week earlier.

Refinery utilization picked up to 93.4% from 91.5% during the week through November 21st. Gasoline production decreased, while distillate fuel output increased, averaging 9.6 million and 5.0 million barrels per day, respectively.

However, this is as far as good news goes. US crude production jumped to 9.083 million barrels per day from 9.077 million, reaching the highest level on recorded weekly data dating back to January 1983. Imports slid to 7.303 million bpd, 170 000 bpd lower from a week earlier, while the four-week average of inbound shipments was 7.323 million bpd, 6.2% below year-ago levels.

Total motor gasoline inventories jumped by 2.143 million barrels to 208.6 million, exceeding analysts expectations for a 1.040-million jump. Distillate fuel stockpiles, which include diesel and heating oil, surged by 3.028 million barrels to 116.2 million, defying projections for a 180 000-barrel decline.