U.S. Crude Stockpiles Increase by 7.2M Barrels, API Reports
U.S. Crude Stockpiles Surge Despite Expectations
The API reported that U.S. crude stockpiles increased more than expected last week, marking the second-straight week of much larger builds, fueling further focus on robust domestic production. The U.S. benchmark traded at $78.03 a barrel following the report after settling up 1.1% at $77.91 a barrel. This surge in stockpiles has raised concerns about the impact on the market.
Oil Inventories Rose by 7.2M Barrels
According to the API, oil inventories rose by about 7.2 million barrels for the week ended Feb. 16, compared with a build of 8.5M barrels reported for the previous week. Economists were expecting an increase of about 4.3M barrels. This unexpected rise has led to uncertainty in the oil market, with analysts closely monitoring the situation for potential implications on pricing and supply.
Gasoline Inventories and Distillate Stockpiles
The API data also showed that gasoline inventories rose by about 415,000 barrels, while distillate stockpiles fell by 2.9M barrels, confounding expectations for a draw of about 2.1M barrels and 1.4M barrels, respectively. This unexpected movement in gasoline and distillate stockpiles has added further complexity to the evolving market dynamics, prompting a reevaluation of supply and demand forecasts.
Anticipation for the Official Government Inventory Report
The official government inventory report due Thursday is expected to show weekly U.S. oil inventories increased by about 4.3M barrels last week. This upcoming report is highly anticipated by market participants, as it could provide critical insights into the trajectory of oil inventories and their potential impact on the broader energy landscape.
