U.S. crude oil stocks rose 2.969 million barrels for the week ending September 18, confounding forecasts for a 641,000-barrel draw. The build pushed commercial stockpiles to 426.4 million barrels, 2% above the five-year average, while distillate supplies stayed 12% below their historic norm.
Crude and Cushing stocks surprise to the upside
The EIA reported crude oil stocks rose 2.969 million barrels versus the 641,000-barrel draw traders expected, a swing of about 3.6 million barrels from forecasts. The prior week's change was a 640,000-barrel draw. Stocks at Cushing, Oklahoma — the delivery point for supply and demand-sensitive West Texas Intermediate futures — increased 2.266 million barrels, reversing a 342,000-barrel draw the week before.
That build brought commercial stockpiles to 426.4 million barrels, according to Oilprice.com, now 2% above the five-year average for this time of year.
Gasoline and distillates draw down
Gasoline inventories fell 1.686 million barrels even though a 93,000-barrel build had been expected, reversing a 794,000-barrel gain from the week before. Distillate stocks declined 428,000 barrels, a smaller draw than the 633,000 barrels forecast, following a 1.585-million-barrel build a week earlier.
Oilprice.com put distillate supplies 12% below their five-year average, even as production of middle distillates slipped to 5.2 million barrels a day. Gasoline output averaged 9.6 million barrels a day over the same period.
Prices firm despite the crude build
Crude futures still rallied on the day the data was released. Brent climbed to $101.40 a barrel, up $2.15 on the day, but stayed down roughly $6 a barrel from this time last week. WTI advanced to $92.00 a barrel, up $1.47, down about $10 a barrel from the same time last week.
Total products supplied, a proxy for crude oil demand, averaged 20.6 million barrels a day over the last four weeks, up 0.5% versus the same period last year.
Sources: InvestingLive, Oilprice.com
Trading involves risk.
Risk Disclaimer
