Investing.com — U.S. oil stockpiles rose by an unexpectedly large amount in the latest week, the Energy Information Administration said on Thursday.
Crude inventories increased by 6.088 million barrels last week, compared with analysts’ expectations for a build of 702,000 barrels.
Distillate stockpiles, which include diesel and heating oil, declined by 24,000 barrels in the week against expectations for a draw of 933,000 barrels, the EIA data showed.
Gasoline inventories dropped by 1.958 million barrels last week the EIA said, compared with expectations for a draw of 83,000 barrels.
“With this crude build, which is again above expectations, we have added a net of nearly 13 million barrels over the past three weeks,” Investing.com analyst Barani Krishnan said. “The latest 6.0-million barrel build was, of course, flagged by API, with its call last night for a 5.2-million rise. Interestingly, the API snapshot also had a 4.57 million draw for gasoline and a 2.71 million drop for distillates, none of which panned out here.”
“As for production, the EIA has added another 100,000 to the previous week’s estimate. That’s a total of 800,000 over three weeks. Of course, in the grander scheme of things, a production of 11.4 million barrels per day is still way below the pre-pandemic record of 13.1 million bpd and hardly enough to make up for the supply deficit forecast through the end of the year at least.”
Krishnan also noted that the International Energy Agency had boosted market sentiment on Thursday by upgrading demand expectations for 2022 to 99.6 million bpd, up 3.3 million from previosuly.
The Paris-based IEA also said that the energy crisis had forced a shift to oil, which might increase demand for crude by 500,000 bpd.
A lack of natural gas, LNG, and coal could keep the oil market in deficit until at least the end of 2021, the IEA added, concurring with popular estimates.
On the flip side, Russia’s Deputy Prime Minister Alexander Novak said on Thursday that Moscow had no issues ramping its oil production to meet projected demand.
That could be in conflict with the latest decision by global oil producing cartel OPEC+ not to add beyond the monthly 400,000 bpd rise the group had agreed to. OPEC+, interestingly, has Russia as the second biggest producer after Saudi Arabia.
Oil Stockpiles Rose 6.088 Million Barrels Last Week: EIA
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