EIA: US crude oil stockpiles drop by 7.6 million barrels

The US Energy Information Administration reported that crude oil inventories dropped significantly last week, mostly due to declines in imports after fog in Texas closed shipping channels there.

The EIA said that crude stockpiles dropped by 7.6 million barrels overall in the week ending 14 December, much more than the decline of 1.5 million barrels that had been anticipated by analysts to a total of 296.9 million barrels.

That brought the total to 32.2 million barrels less than were in storage last year at this time even though inventories at the key Cushing, Oklahoma depot were up by around 100,000 barrels during the week.

Heating oil stockpiles also declined, by 2.1 million barrels to 129.4 million barrels, more than the 500,000 barrels they were expected to lose, but gasoline inventories jumped by 3 million barrels to 205.2 million barrels, 4.3 million barrels more than last year at this time.

Refinery activity was down by 1 percent to 87.8 percent of capacity against an anticipated gain of 0.3 percent.

The decline in crude oil stockpiles sent prices higher, with February contracts for West Texas Intermediate crude up $1.52 to $91.60 per barrel an hour before the close of floor trade on the New York Mercantile Exchange.

Meanwhile, Brent crude for February delivery added $1.07 to $91.19 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade Nymex January gasoline was up 3 cents to $2.33 per gallon while February heating oil gained 5 cents to $2.60 per gallon but March natural gas dropped 11 cents to $7.21 per million British thermal units.