HomeFutures and CommoditiesLast week, API reports a significant 8.5M barrel increase in oil inventories,...

Last week, API reports a significant 8.5M barrel increase in oil inventories, surpassing expectations.

U.S. Crude Stockpiles Surge, Gasoline Inventories Fall

Surprise Increase in U.S. Crude Stockpiles

The API reported that U.S. crude stockpiles increased much more than expected last week. The U.S. benchmark traded at $77.83 a barrel following the report, settling up 1.2% at $77.98 a barrel. This surge in stockpiles has raised concerns about oversupply in the market.

Rising Crude Oil Inventories

According to the API, crude oil inventories rose by about 8.5 million barrels for the week ended Feb. 9, compared with a build of 674,000 barrels reported for the previous week. Economists were expecting an increase of about 2.6 million barrels, indicating a significant upside surprise in the inventory data.

- Advertisement -

Fall in Gasoline and Distillate Stockpiles

The API data also revealed that gasoline inventories fell by about 7.2 million barrels, while distillate stockpiles fell by 4.0 million barrels, confounding expectations for a draw of about 1 million barrels and 2.2 million barrels, respectively. This unexpected decline in product inventories, especially gasoline, has implications for supply and demand dynamics in the energy markets.

Impact on Official Government Inventory Report

The official government inventory report due Wednesday is expected to show a weekly U.S. crude stockpile decrease of about 2.6 million barrels last week. This will be a critical data point to observe the actual impact of the surge in crude stockpiles and the fall in product inventories on the overall market sentiment.

Must Read

Advertisement

spot_imgspot_img