Oil settles lower as inventories rise for brand spanking new in 10 weeks
Investing.com – Crude oil prices settled lower on Thursday, after data showed U.S. supplies of oil rose for the first time in ten weeks, as several refinery shutdowns a couple weeks ago on account of storm Harvey lowered consideration in crude.
On the latest York Mercantile Exchange crude futures for October delivery fell by 7 cents to pay at $49.09 a barrel, whilst on London’s Intercontinental Exchange, Brent gained 24 cents to trade at $54.44 a barrel.
A report with the Energy Information Administration (EIA) showed crude stockpiles rose a lot more than expected this morning offsetting recent optimism on oil prices containing seen crude futures settle higher for three-straight days.
Inventories of U.S. crude rose by roughly 4.6m barrels during the week ended Sept. 1, missing expectations of a rise near only 4m barrels. It had been the initial weekly build in crude stockpiles for ten weeks.
Gasoline inventories, one of the items that crude is refined into, fell by roughly 3.2m barrels, missing expectations of a draw of 5m barrels while distillate stockpiles fell by 1.4m barrels, below expectations associated with a decline of 3m barrels.
The build in crude stockpiles practices heavy flooding resulting from storm Harvey bumped out nearly quarter on the U.S. refining capacity a while back, lowering need for oil, the principle input at refineries.
Crude-oil refinery inputs fell by 3.3 million barrels a day a couple weeks ago, to average 14.5 million barrels a day, while refineries operated the vivaz 79.7% of capacity, the EIA said.
Analysts expect the fallout from storm Harvey will keep to weigh on crude stockpiles as refiners are slow to restart operations although the end in the summer driving season is traditionally connected with a dip in oil demand.
“We all do feel we can go on to see oil builds from the weeks to return due to demand destruction and particularly since we have been after summer driving season.” Tyler Richey, co-editor with the Sevens Report said.