Oil trap after a sharp increase in the raw material, petrol stocks
Crude oil prices were lower after the DEA had reported a weekly build-up of crude oil inventories, with a considerable 6.8 million barrels. This compared to a move of 4 million barrels for the previous week.
One day earlier, the US Petroleum Institute's estimated inventory had risen by 3,545 million barrels last week, with petrol stocks also swelling. The report contributed to an already downward decline in prices.
At 483.3 million barrels, EIA said crude oil inventories were about 5 percent higher than seasonal averages.
In gasoline, the authority reported a building of 3.2 million barrels a week until May 31. This compares with a decrease of 600,000 barrels a week earlier. Petrol production averaged 1[ads1]0 million bpd last week, compared to 10.1 million bpd a week earlier.
In distillate fuels, EIA also reported a stockpile of 4.6 million barrels last week, compared to a minor drawing of 200,000 barrels a week earlier. Refiners calcined 5.4 million bpd distillates last week, up from 5.1 million bpd a week earlier.
Crude oil EIA figures are unlikely to provide any relief for prices as trade war-related concerns for the world economy expand. Earlier this week, Deutsche Bank, in a note to customers, said that Washington's fare drink has so far cost the US financial market some US $ 5 trillion in lost share price opportunities. According to the bank, average annual share price growth since 2009 has been 12.5 per cent, but over the last 12 months this has fallen to below 1 per cent, mainly on the back of the trade war between the US and China.
In addition to this concern, Rosneft's Igor Sechin openly spoke of an extension of the production cut in the second half of the year, saying that Rosneft would seek compensation from the Kremlin if it decides to stay in the deal.
At the time of writing, the West Texas Intermediate traded at US $ 52.62 per barrel of Brent crude at US $ 61.35 per barrel.
By Irina Slav for Oilprice.com
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