In response to the unexpected growth in US crude stocks, oil prices fell on the world market. WTI crude oil prices rose by 0.05% to $80.87, while Brent crude oil prices fell by 0.22% to $85.22.
US commercial crude oil stocks rose by 3.59 million barrels over the course of the week, according to EIA data, a sharp contrast to the 2.8 million barrel drop that the market had anticipated.
According to a note from ING, this brings commercial crude oil stockpiles to 460.7 million barrels, the highest level since April. Crude oil imports decreased by 443,000 barrels per day (b/d) per week, while exports decreased by 508,000 b/d.
Crude input into refineries fell by 233,000 b/d week on week, and refiners cut their utilisation rate by 1.3pp over the week, according to the report.
Despite lower refinery activity, gasoline stocks still increased by 2.65 million barrels. ING said this suggested that gasoline demand was weaker over the period, falling 417,000 b/d week on week.
Analysts do not expect this to ease gasoline demand concerns as we move deeper into the summer. # Oil Dips over Surprise Increase in US Crude Stock.
