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Oil Inventories unexpectedly jumped by 594,000 Barrels Last Week: API

Published 12/05/2023, 05:20 PM
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Investing.com -- U.S. crude inventory unexpectedly increased last week, the API reported Tuesday, adding to concerns about a potential global crude supply surplus following weaker-than-expected pledges to cut output by major oil producers last week.  

Crude Oil WTI Futures, the U.S. benchmark, traded at $72.06 a barrel following the report after settling down 1.1% at $72.32 a barrel.

U.S. crude inventories  rose by 594,000 barrels for the week ended Dec. 1, compared with a draw of 817,000 million barrels reported by the API for the previous week. Economists were expecting an decline of about 2.3M barrels.

The unexpected increase adds to concerns about burgeoning non-OPEC supply offsetting recent output-cut pledges by OPEC and its allies, OPEC+. 

On Nov. 30, OPEC+ pledged to take 2.2 million barrels a day offline early next year.  

The API data also showed that gasoline inventories increased by 2.8M barrels last week, while distillate stocks decreased by 89,000 barrels.

The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies decreased by about 2.9M barrels last week.

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