EIA reports US crude stockpiles surged 17.4 million barrels, defying forecasts
Commodity
The US Energy Information Administration, or EIA, said US crude oil inventories soared by 17.423 million barrels last week, sharply defying analyst expectations for a decline of 1.8 million barrels. Crude stocks at Cushing, Oklahoma, the delivery point for US crude futures, fell to 1.611 million barrels in the week ended August 7, compared with 2.356 million barrels previously. Gasoline inventories fell by 0.968 million barrels, while analysts had expected a decline of 1.1 million barrels. Distillate stockpiles, which include heating oil and diesel, fell by just 10,000 barrels, while analysts had expected a drop of 2 million barrels. Analysts said the most surprising figure was the massive build in crude reserves of more than 17 million barrels, which went against market expectations for a decline. Taken on its own, that figure is a clearly negative signal for oil prices because it suggests that in the short term, the US oil market has far more excess supply than most analysts had anticipated. The latest EIA data came just one day after an API report showed crude reserves rose by as much as 9.072 million barrels over the same period. Crude futures fell on Wednesday morning US time after two straight days of gains. At 9:51 a.m. New York time, Brent crude was at 88.52 dollars a barrel, down 0.39 dollars, or 0.44 percent, from the previous day, but still about 9 dollars a barrel higher than the same time a week earlier. West Texas Intermediate crude also declined, falling 0.44 dollars a barrel, or 0.53 percent, to 82.76 dollars, which was 7.50 dollars a barrel higher than the same time a week earlier.
