- Crude inventories rose by 7.9 million barrels in the week to June 9, the EIA said, compared with analysts’ expectations in a Reuters poll for a draw of 510,000 barrels.
- Distillate stockpiles, which include diesel and heating oil, rose by 2.1 million barrels in the week versus expectations for a rise of 1.2 million barrels, the EIA said.
- Oil prices pared gains following the data and turned slightly negative after rising $1 per barrel earlier in the session.
U.S. crude oil stockpiles posted a surprise large build last week, while gasoline and distillate inventories gained more than expected, the Energy Information Administration (EIA) said on Wednesday.
US crude inventories large build
Crude inventories rose by 7.9 million barrels in the week to June 9, the EIA said, compared with analysts’ expectations in a Reuters poll for a draw of 510,000 barrels.
“U.S. crude inventories have jumped higher, hitting the brakes on today’s rally, while builds to the products are somewhat inevitable given strong refinery runs,” said Matt Smith, lead oil analyst for the Americas at Kpler.
While refinery utilization rates dropped by 2.1 percentage points in the week, rates are still relatively elevated compared to recent months.
Meanwhile, refinery crude runs fell by 61,000 barrels per day (bpd).
Oil prices turned slightly negative
Oil prices pared gains following the data and turned slightly negative after rising $1 per barrel earlier in the session. Brent crude futures traded at $74.26 and U.S. crude was at $69.34 at 10:55 a.m. EDT.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.6 million barrels last week, the EIA said.
Gasoline stocks rose by 2.1 million barrels in the week, the EIA said, compared with analysts’ expectations for a rise of 316,000 barrels.
Across-the-board inventory increases
Distillate stockpiles, which include diesel and heating oil, rose by 2.1 million barrels in the week versus expectations for a rise of 1.2 million barrels, the EIA said.
“The across-the-board inventory increases are decidedly bearish for the oil markets,” said Andrew Lipow, president of Lipow Oil Associates in Houston. “It continues the trend we’ve seen in refined products over the last month.”
Net U.S. crude imports dropped by about 810,000 bpd, the data showed.
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Source: Hellenic shipping News
