The U.S. Petroleum Institute (API) on Tuesday reported an increase in crude oil inventories of 2.562 million barrels for the week ended January 15th.
Analysts have forecast a stock supply of 1.167 million barrels for the week.
In the previous week, the API reported in the oil inventory of 5,821 million barrels, after analysts predicted a draw of 2,266 million barrels.
Oil prices were mixed on Wednesday before the release of the data, with WTI higher and Brent lower. A widespread spread in China that has sequestered millions of residents over concerns about an increase in coronavirus cases, the IEA’s gloomy outlook for oil demand, a slow global implementation of the coronavirus vaccine plagued by technical problems , as well as reports of adverse effects, and a continuing stimulus in the US, while investors dreaming of increasing economic activity and being encouraged to drop money in dangerous endeavors, such as oil, have all contributed to a muddy water effect for the commodity.
An hour before Wednesday’s announcement, WTI rose $ 0.30 (+ 0.57%) to $ 53.28 on the day, which is a modest $ 0.015 since last week.
Brent’s crude benchmark, on the other hand, fell $ 0.05 (-0.09%) that day to $ 56.55- $ 0.70 lower than the week.
U.S. oil production has stagnated at 11.0 million bpd, according to the latest data provided by the Energy Information Administration, and there is likely to be no significant increase in U.S. oil production while stocks remain high – higher than a few million barrels could correct.
The API reported a build-up of 1.129 million barrels of petrol stock for the week ending January 15 – compared to the previous week’s 1.876 million barrel build. Analysts had expected a construction of 2.771 million barrels for the week.
The rounding up of the stock for the week was distillate, which brought an increase of 816,000 barrels for the week, which contributed an increase of 4.433 million barrels last week, while Cushing’s stock saw the only decline this week, with 4.255 million barrels.
At 16:34 EDT is trading the WTI benchmark at $ 53.28, while Brent crude is trading at $ 55.97.
By Julianne Geiger for Oilprice.com
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