US crude stockpiles jump 7.1 million barrels, API data shows
The build far exceeds forecasts of a 1.8 million barrel draw, though tightening fuel stocks complicate the picture
Published
Chart: USO, a fund that tracks crude, daily closes either side
US crude inventories rose by 7.1 million barrels last week, according to data from the American Petroleum Institute, confounding expectations of a 1.8 million barrel draw. The prior week's report had shown a smaller build of 0.3 million barrels.
The increase is larger than recent weekly moves in either direction and reverses the draw that traders had priced in. Such a swing would typically weigh on oil prices by signalling weaker demand or higher supply than expected.
But gasoline and distillate inventories tightened over the same period, cutting against the bearish signal from the crude number. That leaves the overall supply-demand balance unclear ahead of the official data due from the US Energy Information Administration.
Traders watching the API figures as an early read on the EIA's weekly report will need to wait for that fuller breakdown to judge whether the crude build reflects a genuine loosening of the market or a one-off swing offset by firmer demand for refined products.