Investing.com — Oil stockpiles unexpectedly rose last week, according to the latest U.S. government data.
rose 4.35 million barrels, against expectations for a draw of 1.16 million barrels, the Energy Information Administration said Friday.
The data release was delayed this week because of the U.S. holiday.
inventory fell 260,000 barrels, compared to expectations for a build of 2.77 million barrels. rose 458,000 barrels.
rose 110,000 barrels, and the was 0.5%.
“The crude build that some of us had anticipated for weeks is finally here,” said Investing.com analyst Barani Krishnan. “Given that we’re still very much in a deep pandemic situation, there’s only so much fuel products that refiners can keep turning out in the absence of real consumption at the retail level.”
Krishnan added: “Contributing to the crude build here is a huge slump in exports, which fell by nearly 750,000 barrels per day. If you multiply that by the number of days in the week, you already have more than your build volume there. But to offset some of that slack in exports, we also took in less imports last week, to the measure of 194,000 bpd. In the final mix, you have a crude build that very closely balances the two variables. On the fuel front, you have finally registering a draw of just over a quarter million barrels versus an expected build of 2.8 million. We need to consider that in the perspective of a previous gasoline build of 9 million barrels over the previous two weeks. In distillates, the build is less than half a million barrels versus expectations of a rise of 1.2 million. In summary, we need to see how the numbers develop in the coming weeks to get a proper read of the situation. From all accounts, the pandemic is going to get worse before it gets better, so it’ll be interesting to see how oil demand develops from here. Also, Iran, as I had been speculating for some time, is coming aggressively back into the market with production, post Trump-era sanctions, so that’s also something that needs to be watched carefully, from the perspective of OPEC+’s stage-managed output.”
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