WTI drop as DoE reports unexpected rise in oil stockpiles

12 June 2019

(Sharecast News) - Commercial crude oil stockpiles in the US rose unexpectedly during the prior week, government data revealed despite a decline in net imports and domestic output.
According to the<em> Energy Information Administration</em>, the US Department of Energy\'s statistical arm, commercial crude oil stockpiles rose by 2.2m barrels over the week ending on 7 June and at 485.5m barrels were standing roughly 8% above their five-year average.

But domestic oil output decreased by roughly 100,000 barrels a day to 12.3m b/d while net imports shrank by 140,000 b/d to 4.489m b/d with exports down by 176,000 b/d.

Inventories of finished gasoline meanwhile rose by 0.8m barrels during the week, leaving them 2% above their five-year average, while those of distillates decreased by 1.0m barrels and were 4% below their five-year average.

Refineries operated at 93.2% of capacity over the latest week.

\"Nevertheless, we still expect US crude stocks to drop in the coming months in part because we think that OPEC+ will rollover its production quota,\" said Samuel Burman, assistant commodities economist at <em>Capital Economics</em>.

As of 1912 BST, West Texas Intermediate crude oil futures for July delivery were trading down by 3.08% to $51.68 a barrel on the ICE.