- EIA says crude oil inventories in the U.S. rose by 6.8 million barrels.
- API’s weekly data also shows large build in stockpiles.
After closing the previous day with small gains, the barrel of West Texas Intermediate turned south on Wednesday and pierced through the $52 handle for the first time after the weekly report published by the U.S. Energy Information Administration (EIA) showed a larger-than-expected increase in crude oil stockpiles. As of writing, the WTI was trading at its lowest level since mid-January at $51.40, erasing 2.8% on a daily basis.
Following Tuesday’s API report, which showed that crude oil stocks in the U.S. grew by 3.5 million barrels in the week ending May 31, the EIA today announced that commercial crude oil inventories rose by 6.8 million barrels in the same period compared to analysts’ estimate for a draw of 0.8 million barrels.
Assessing the underlying details of the report, “Inventories of distillate fuel oil surged 4.572 mmb, nearly ten times what energy analysts had expected. Inventories of motor gasoline rose 3.205 mmb, about five times what analysts predicted,” Reuters said.
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