MOSCOW (MRC) -- U.S. crude oil stockpiles posted a surprise large build last week, while gasoline and distillate inventories gained more than expected, as per Hydrocarbonprocessing.
Crude inventories rose by 7.9 million barrels in the week to June 9, the EIA said, compared with analysts' expectations in a Reuters poll for a draw of 510,000 barrels. "U.S. crude inventories have jumped higher, hitting the brakes on today's rally, while builds to the products are somewhat inevitable given strong refinery runs," said Matt Smith, lead oil analyst for the Americas at Kpler.
While refinery utilization rates dropped by 2.1 percentage points in the week, rates are still relatively elevated compared to recent months. Meanwhile, refinery crude runs fell by 61,000 barrels per day (bpd). Oil prices pared gains following the data and turned slightly negative after rising USD1 per barrel earlier in the session. Brent crude futures traded at USD74.26 and U.S. crude was at USD69.34 at 10:55 a.m. EDT.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.6 million barrels last week, the EIA said, to the highest since June 2021. Cushing stockpiles have gained for eight weeks in a row, the data showed. Gasoline stocks rose by 2.1 million barrels in the week, the EIA said, compared with analysts' expectations for a rise of 316,000 barrels.?
Distillate stockpiles, which include diesel and heating oil, rose by 2.1 million barrels in the week versus expectations for a rise of 1.2 million barrels, the EIA said. "The across-the-board inventory increases are decidedly bearish for the oil markets," said Andrew Lipow, president of Lipow Oil Associates in Houston. "It continues the trend we've seen in the refined products over the last month." Net U.S. crude imports dropped by about 810,000 bpd, the data showed.
We remind, India will soon overtake China as the largest driver of global oil demand, International Energy Agency (IEA) chief Fatih Birol said on Wednesday.The Paris-based energy agency said in its outlook report released on Wednesday that about three quarters of the 2022-28 demand growth increase will come from Asia, with India surpassing China as the main source of growth by 2027.