Investing.com — Crude stockpiles rose an unexpected amount last week, confounding expectations for a draw-down, according to government data.
rose 4.3 million barrels, according to the Energy Information Administration. The expectation was for a draw of 913,000 barrels. The data contradict the industry’s own calculation of a draw more than 5 million barrels last week, according to the American Petroleum Institute.
Oil stored at , Oklahoma, declined 518,000 barrels last week, against expectations for a draw of 1.6 million barrels.
“At a glance, it looks like API had a big miss on its inventory estimate, which it put at a 5.15-million-barrel draw instead. I’d argue that getting any of these estimates is hard with the amount of disruptive hurricane activity we’ve been having this year, with Storm Zeta from two weeks ago being the latest,” said Investing.com analyst Barani Krishnan. “Each of these hurricanes result in brief but near total shutdowns that invariably spring back quickly, forcing estimators to sharply pare crude inventory/fuel demand estimates at first, only to ratchet them much higher later.”
Krishnan added: “Last week, particularly, refinery runs were 105,000 barrels per day less than the previous week’s average, while imports rose by 470,000 bpd day. That said, there’s still a bright spot for oil bulls in this EIA report, especially with which fell by 2 million barrels above forecast. And slid 3.5 million barrels more than thought. That, and recent OPEC rumblings about staying the course with production cuts, are helping keep crude prices in the green today despite a rather ominous IEA forecast on energy as Covid-19 cases take on a new rampage.”
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