U.S. API Crude Inventories Build 2.7M Barrels, Surprising Markets
The American Petroleum Institute reported a 2.7 million barrel increase in U.S. crude stocks, against expectations for a 2 million barrel draw. Cushing inventories also rose sharply.
The U.S. crude oil market received bearish inventory data late Tuesday. The American Petroleum Institute (API) reported that domestic crude stocks rose by 2.7 million barrels for the week, whereas analysts had forecast a draw of 2 million barrels. This follows a previous draw of 3.296 million barrels.
Stocks at the Cushing, Oklahoma delivery hub climbed 2.4 million barrels, signaling weaker demand or higher supply at the key pricing point.
In product categories, distillate inventories fell by 1.2 million barrels, while gasoline stocks edged up by 0.2 million barrels.
The unexpected crude build pressured oil prices in electronic trading, though official data from the U.S. Energy Information Administration is still due later Wednesday.
Source: First Squawk