Surprise Increase in US Crude Stockpiles
Oil Inventories Show Huge Upside Surprise
The API reported a significant increase in U.S. crude stockpiles last week, exceeding expectations. However, product inventories, including gasoline, fell more than anticipated.
Crude Oil Prices React
Following the report, the U.S. benchmark for crude oil traded at $77.83 a barrel, showing a minimal decline after settling up 1.2% at $77.98 a barrel.
Unexpected Rise in Crude Stockpiles
Crude oil inventories rose by approximately 8.5 million barrels for the week ended Feb. 9, a substantial increase compared to the previous week’s build of 674,000 barrels reported by the API. Economists had predicted an increase of about 2.6 million barrels.
Surprising Decline in Gasoline and Distillate Stockpiles
The API data also revealed a surprising decline in gasoline and distillate stockpiles, with gasoline inventories falling by about 7.2 million barrels and distillate stockpiles decreasing by 4.0 million barrels, confounding expectations for a draw of about 1 million barrels and 2.2 million barrels, respectively.
Anticipated Government Inventory Report
The official government inventory report, expected to be released on Wednesday, is projected to show a decrease of approximately 2.6 million barrels in weekly U.S. crude stockpiles last week.
