U.S. crude oil, products inventories fall: EIA

NEW YORK (Reuters) - U.S. crude inventories fell sharply last week on lower imports while an increase in demand helped draw down gasoline stockpiles, according to data released by the U.S. Energy Information Administration on Wednesday.

Crude imports fell by 676,000 barrels per day (bpd) in the week to June 5, helping to push crude stockpiles down by 4.4 million barrels, according to the EIA report. Analysts polled by Reuters had forecast a 400,0000 barrel draw.

"The number that kind of stands out right away is the drop in crude oil imports," said Gene McGillian, analyst for Tradition Energy in Stamford, Connecticut. "If imports are going to drop, we're going to see some of the stockpiles erased."

"Gasoline (stockpiles) are down, but it looks as if demand is also up, so that's another supportive factor," he added.

Gasoline inventories dropped 1.6 million barrels, contrary to analysts forecasts for a 800,000 barrel build. The draw came as gasoline demand rose by 0.4 percent over the four week period, the start of the U.S. summer driving season, compared with year-ago levels.

Further support came as refinery utilization fell by 0.4 percentage points to 85.9 percent of capacity.

Distillate stocks, including diesel and heating oil, fell by 300,000 barrels, versus analysts expectations for a 1.4 million barrel increase.

Crude oil prices traded up $1.16 to $71.17 a barrel at 10:57 a.m. after the data was released while gasoline futures on the New York Mercantile Exchange topped $2 a gallon for the first time since October.

Crude stockpiles at the key Cushing, Oklahoma delivery point for the NYMEX crude contract fell by 900,000 barrels during the week, according to the data.

The EIA report follows data from the American Petroleum Institute released late Tuesday, which showed a 6 million barrel draw in crude oil stocks, a 27,000 barrel rise in gasoline inventories and a 19,000 barrel gain in distillates.

Despite the rebound in gasoline demand, overall product demand fell by 6.9 percent for the four weeks ending June 5 against the same period last year, the EIA reported, while distillate demand was off 8.4 percent.

Oil demand has been hard hit by the economic crisis, sending crude prices off record highs over $147 a barrel last July. Signs that the economy may be recovering have lifted prices over the past month, however.

(Editing by Marguerita Choy)