Crude Oil Prices Fall as Inventories Build, Beating Expectations
- Crude oil prices fell 2% after inventories saw an addition of 2.3 million barrels
- Analysts expected a 2.5 million barrel draw, affirmed by yesterday’s API data
- Inventories remain above their yearly averages for both crude oil and gasoline
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Crude oil prices fell nearly 2 percent after the Energy Information Agency reported a 2.25mb addition to inventories, whereas a 2.5mb withdrawal was expected. Yesterday the American Petroleum Institute reported a 4mb drop in stockpiles, strongly contradicting today’s release. Crude inventories as of last week totaled 485.5mb, with the EIA noting that reserves are at the upper limit of their historical average.
Implied demand, or total products supplied, was reported down 1.3 percent year-over-year. Gasoline inventories fell by 1.3mb last week but total stockpiles are also above their average historical range.
Tomorrow the EIA will release its natural gas storage change, and on Friday Baker Hughes will announce their weekly rig count number.
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