U.S. crude, gasoline stocks build unexpectedly as refineries cut output - EIA
A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson
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By David Gaffen
(Reuters) - U.S. crude and gasoline inventories rose unexpectedly last week as refineries cut output, the U.S. Energy Information Administration said on Wednesday, prompting a drop in oil futures.
"The report is bearish, especially relative to expectations, led by the rise in crude oil inventories that was due to the refinery utilization declines and large rise in imports," said John Kilduff, partner at New York energy hedge fund Again Capital.
U.S. crude imports
Refinery crude runs
The weekly data shows that gasoline stocks in the U.S. Gulf Coast reached a seasonal high not seen since 2013, which could reflect decreased activity due to weaker demand.
Overall, the surprising build in gasoline stocks leaves a "substantial 8.5 percent year-on-year inventory surplus in place with little time left in the driving season," said Tim Evans, Citigroup energy analyst, in a note.
After the data, U.S. gasoline futures
Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures
(Reporting by David Gaffen; Additional reporting by Barani Krishnan; Editing by Marguerita Choy)
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Related EntitiesOil Inventories, Citi, Hedge Funds, Crude Oil
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