Crude oil inventories break above 500 MMBO
U.S. crude oil inventories continued to grow this week, reaching a new record high of 502.7 MMBO, according to information from the Energy Information Administration. Crude inventories rose 7.8 MMBO in the last week, exceeding analysts’ expectations of an increase of just 4.8 MMBO, as imports jumped and refiners trimmed throughput.
Crude imports rose 647 MBOPD while refinery crude runs fell 24 MBOPD as utilization rates fell 0.8% to 86.6% of capacity, reports Reuters. Refineries about to begin maintenance season as well, meaning throughputs could fall further, increasing the amount of crude oil in storage.
Gasoline inventories also soared 5.9 MMBO this week to reach a record 254.4 MMBO. Analysts had forecast a 1.7 MMBO gain in gasoline inventories for the week.
Oil climbs back over $32 despite bullish inventory report
Despite the bullish inventory report, oil prices broke a two-day losing streak today and leapt over 8% to more than $32 per barrel. The record-setting inventories was offset by a softening in the value of the dollar, reports CNBC.
“We’re getting the rally in crude oil from the pounding that the dollar is taking,” said Robert Yawger, senior vice president of energy futures at Mizuho Securities USA.
“There is a little bit of speculative activity involved in that too. The market has a tendency as of late here to draw in speculative positions when we trade below $30,” he said.
Brent crude oil was also up today, climbing above $34 per barrel as the Russian Foreign Minister reiterated that the country remains open to meeting with OPEC, and other non-OPEC producers to trim output. A deal has yet to materialize, however, as Russia’s oil production hit a new post-Soviet high for a second consecutive month, reports World Bulletin.
