US crude stocks fell unexpectedly last week, while gasoline stocks increased and distillate inventories fell, Energy Information Administration data showed on Wednesday.Refiners were seen reducing stockpiles for tax and accounting reasons before the end of the year, market participants said.
The data surprise offered an opportunity for traders to take cover shorts that were already in the market, driving crude futures to session highs.
US crude futures jumped US$1.32, or 3.6 per cent, to US$37.45 a barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, added US$1.14, or 3.2 per cent, to US$37.25 a barrel in London.
"Right now, considering the multi-year lows we dropped to a few days ago, this is just short-covering as people take some money out before the end of the year," said Gene McGillian, senior analyst at Tradition Energy.
McGillian said he attributed the draw down in stockpiles to end of year tax and accounting measures.Crude inventories fell by 5.9 million barrels in the last week, compared with analysts' expectations for an increase of 1.1 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2 million barrels, EIA said.Refinery crude runs fell by 143,000 barrels per day, EIA data showed. Refinery utilisation rates fell by 0.6 percentage points.
Gasoline stocks rose by 1.1 million barrels, compared with analysts' expectations in a Reuters poll for a 1.4 million barrels gain.Distillate stockpiles, which include diesel and heating oil, fell by 661,000 barrels, versus expectations for a 2.0 million barrels increase, the EIA data showed.
US crude imports fell last week by 1.041 million barrels per day.