Oil prices are trading lower Thursday morning on the back of data showing that US crude stocks rose last week. By 08.06 AM BST Brent crude was trading at $56.6/bbl, 0.6% down from yesterday’s settlement. At the same time WTI had lost 0.64% to trade at $50.97/bbl.
A US oil & gas body found that crude oil stocks rose by 3.1 million bbl during last week. The build comes as a surprise as a Reuters poll had found that stocks likely dropped 2 million bbl last week. Thomson Reuters Oil Research assessed weekly US crude supply (imports and production) and demand (refinery input and exports) and concluded that demand outpaced demand by 2.16 million bbl, likely resulting in a crude stock decline.
Refinery crude runs were seen up by 260,000 bpd, according to the agency, however we find that the weekly gain was limited to around 350,000 bpd, with the overall intake rate rising to 16.38 million bpd. Gasoline stocks fell by 1.6 million bbl, compared with analysts’ expectations for a 480,000 bbl decline. Distillate fuels stockpiles rose by 2 million bbl, compared to an anticipated drop of a 2.2 million bbl.
Thomson Reuters Oil Research also estimates that crude imports in the country stood at 7.9 million bpd, a 660,000 bpd increase week-on-week. Exports on the other hand are expected to have declined to 1.36 million bpd from a record level of 2 million bpd the week prior.
The Oil Research Team
Supply Chain & Commodities Research