Friday, 13 November 2015 01:15
NEW YORK: US crude stocks rose last week as imports jumped, while swollen gasoline stocks decreased and distillates unexpectedly rose as refiners hiked output, data from the Energy Information Administration showed on Thursday.
Crude inventories rose by 4.2 million barrels to 487 million in the last week, compared with analysts’ expectations for an increase of 1.0 million barrels. Stockpiles have now risen for seven consecutive weeks, nearing a record high above 490 million barrels touched in April.
“It’s another data point highlighting the oil glut in the U.S. or the global markets for that matter,” said Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland.
“With inventories approaching record levels, coupled with weak equity markets and a stronger dollar, we would not be surprised to see a retest of the $ 38 level set in August.”
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The EIA data came on the heels of an OPEC report that suggested the producer group could have a daily supply surplus of more than half a million barrels by 2016 if it continued pumping at current rates.
Brent futures were down $ 1.24, or 2.7 percent, at $ 44.57 a barrel by 11:38 a.m. EST (1638 GMT). The session low was $ 44.33, the lowest since Aug 27.
U.S. crude futures fell by $ 1.10, or 2.6 percent, to $ 41.83.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2.237 million barrels, the biggest weekly increase since March, the EIA said.
Refinery crude runs rose by 302,000 barrels per day, EIA data showed, pushing output to its highest rate on record for this time of year. Refinery utilization rates rose by 0.8 percentage point.
Gasoline stocks, which have been hovering at seasonal record highs since early October, fell by 2.1 million barrels, compared with analysts’ expectations in a Reuters poll for a 807,000 barrels drop.
Distillate stockpiles, which include diesel and heating oil, rose by 352,000 barrels, versus expectations for a 931,000-barrel drop, the EIA data showed. Inventories now stand at their highest for this time of year since 2010.
U.S. crude imports rose last week by 434,000 barrels per day.
“The substantial crude oil inventory rise is a definitive negative for the market and prices, but strong demand for gasoline and a large rise in distillate demand is a silver lining for market bulls,” said John Kilduff, partner at New York energy hedge fund Again Capital.
“Still, crude and refined products remain over-supplied in virtual glut conditions.”
