Bigger-than-expected rise in stockpiles weighs on oil

Sydney — US oil prices inched down on Thursday, with traders worried about the strength of demand in the US after petrol stockpiles there grew last week by far more than analysts had expected.

US West Texas Intermediate (WTI) crude futures were at $52.20 a barrel at 12.22am GMT, down 11c, or 0.2%, from their last settlement. WTI futures closed up 0.4% on Wednesday.

International Brent crude oil futures had yet to trade, after closing up 1.1% in the previous session.

“While [US] inventories fell slightly more than expected, there was a large build in [petrol] inventories. This stoked fears of weak demand in the US,” ANZ Bank said in a research note.

The US Energy Information Administration (EIA) said in a report on Wednesday that crude production rose last week to a record 11.9-million barrels a day, as crude exports jumped close to record highs near 3-million barrels a day.

However, petrol stockpiles climbed 7.5-million barrels, far exceeding analyst expectations in a Reuters poll for a 2.8-million barrel gain. At 255.6-million barrels, petrol stocks were at their highest weekly level since February, 2017.

Reuters