Oil Dips over Surprise Increase in US Crude Stock
Oil prices declined in the global commodity market following surprise increase in US crude inventories. Brent crude oil prices dropped by 0.22% to $85.22, while WTI increased by 0.05% to $80.87.
EIA data showed that US commercial crude oil inventories increased by 3.59 million barrels over the week, in stark contrast to 2.8 million barrel draw the market was expecting.
This leaves commercial crude oil inventories at 460.7 million barrels, the highest level since April, ING said in a note. While crude oil exports fell by 508,000 barrel per day (b/d) week on week, imports also fell by 443, 000 b/d.
Crude input into refineries fell by 233,000 b/d week on week and refiners cut their utilisation rate by 1.3pp over the week, according to the report.
Despite lower refinery activity, gasoline stocks still increased by 2.65 million barrels. ING said this suggested that gasoline demand was weaker over the period, falling 417,000 b/d week on week.
Analysts do not expect this to ease gasoline demand concerns as we move deeper into the summer. # Oil Dips over Surprise Increase in US Crude Stock. #Oil Dips over Surprise Increase in US Crude Stock Investors Gain N95bn as Equities Market Rebounds
