EIA weekly oil inventory data:
- Gasoline stocks down 0.61m vs a build of 1.26m expected
- Gasoline demand in past 4 weeks up 3.9% y/y
- Refinery utilization up 1.2 pp to 92.7%
Oil is up by more than a dollar after the unexpectedly large drawdown in supplies. I sense a bit of a squeeze in oil shorts.
On the bearish side, the EIA reports that US crude oil production has risen to the highest since September 1988 as the shale boom continues. The US produced 8.111m barrels per day in the week ending Dec 20 and more oil is coming online every day.
