US crude oil inventories rise more than projected

Both West Texas Intermediate and Brent crude were little changed after the Energy Information Administration stated a larger-than-expected jump in US crude oil inventories last week, while refinery utilization rose and distillate fuel stockpiles decreased.

January US crude traded 0.13% higher at $74.74 per barrel at 15:54 GMT, having shifted in a daily range of $75.12-$73.92. The contract slid 1.35% to $74.64 on Tuesday.

Meanwhile on the ICE, Brent for settlement in the same month was up 0.34% at $78.74. Prices ranged between $79.45 and $78.05 during the day. The European crude benchmark fell 1.06% to $78.47 on Tuesday, settling at a premium of $3.83 to its US counterpart. The gap widened to $4.00 on Wednesday.

The government agency reported that US crude oil stockpiles rose by 2.608 million barrels to 381.1 million in the seven days ended November 14th, exceeding analysts projections for a jump of between 0.8 million and 1.5 million barrels. Stockpiles at the Cushing, Oklahoma, oil hub increased by 0.7 million barrels to 23.2 million.

Domestic crude output inched lower to 9.004 million barrels per day, compared to 9.063 million bpd a week earlier, which was the largest on record for weekly data. Imports rose to 7.638 million bpd, compared to 6.877 million a week earlier, while the four-week average of inbound shipments was 7.073 million bpd, down 6.9% from a year earlier.

Refinery utilization picked up to 91.2% from 90.1% during the previous week. Motor gasoline production rose, while distillate fuel output decreased, averaging around 9.6 million and 4.8 million barrels per day.

Total motor gasoline inventories rose by 1.034 million barrels last week to 204.6 million, exceeding expectations for a 0.6-million jump. Distillate fuel stockpiles, which include diesel and heating oil, slid 2.056 million barrels to 114.8 million, compared to forecasts for a 1.880-million drop.

Industry group the American Petroleum Institute reported on Tuesday that US crude oil inventories rose by 3.7 million barrels per day in the week ended November 14th. Motor gasoline inventories were reported to have risen by 0.519 million barrels, while distillate fuel stockpiles, which include diesel and heating oil, slid by 3.3 million.

API’s data, however, is deemed less popular than official statistics as they are based on voluntary information by operators of pipelines, refineries and bulk terminals, while the government requires reports be filed with the Energy Information Administration.