EIA: US crude inventories drop nearly 5 million barrels last week

Crude oil prices were up after the US Energy Information Administration said Wednesday in its weekly inventories report that crude oil stockpiles fell much more than expected last week, while gasoline inventories were down by nearly a million barrels when they were expected to rise by more than that.

In the week ending 18 December, US crude oil inventories were down by 4.9 million barrels to 327.5 million barrels against an expected decline of just 2 million barrels, while gasoline stockpiles dropped 900,000 barrels during a week when they were expected to rise by 1.3 million barrels.

Additionally, distillates in storage fell by 3.1 million barrels, more than their expected decline of 2.25 million barrels.

In mid-morning trade in New York, February contracts for West Texas Intermediate crude had added $1.67 to $76.07 per barrel, while at last report February Brent crude was up $1.18 to $74.64 per barrel on the ICE Futures Europe exchange in London.

Nymex gasoline and heating oil futures were also up on the new data.

Meanwhile, the retail price of a gallon of gasoline in the United States held steady overnight at $2.534 per gallon, 6 cents below last month at this time but nearly a dollar higher than last year.

Still, despite the much higher gasoline prices over last year’s holiday season, AAA said it expects 87.7 million Americans to drive more than 50 miles from home over the holidays this year.