US crude, distillate stockpiles rise unexpectedly

US crude oil and distillate inventories rose unexpectedly and fuel demand slipped last week, the Energy Information Administration said, as a sharp outbreak in coronavirus cases hit US consumption.

US crude production ticked higher and refined products supplied, a proxy for fuel demand, declined. The market has recovered from the doldrums of April, when US prices briefly dropped to more than negative-$40 a barrel, as producers trimmed supply due to a slump in demand amid lockdowns to control the pandemic.

Crude inventories rose 4.9 million barrels in the week to July 17 to 536.6 million barrels, compared with analysts’ expectations in a Reuters poll for a 2.1 million-barrel drop. Production rose to 11.1 million barrels per day (bpd), up 100,000 bpd.

Distillate stockpiles, which include diesel and heating oil, rose 1.1 million barrels to 177.9 million barrels, their highest since December 1982, data showed. Analysts had expected a 618,000-barrel drop.

Gasoline stocks fell 1.8 million barrels, more than forecasts for a 1.4 million-barrel drop as refinery utilization rates fell 0.6 percentage point to 77.9% of capacity. US East Coast refinery rates plunged to 36.6%, their lowest on record, according to the data going back to 2010. ​