US oil supplies rose to new highs in data released, the latest evidence of a historic glut that has cut reduced the prices in half over the last seven months.
US commercial crude oil inventories climbed 7.7 million to a record 425.64 million barrels in the week ended February 13, as reported by the US Energy Information Administration.
According to Reuters, the build was the largest weekly addition in barrels since the records started in 1982, exceeding analysts’ estimates of a rise of 3.2 million barrels.
Gasoline stocks climbed 485,000 barrels in comparison to the expectations of analysts for a 167,000 barrels gain. Distillate stockpiles dropped 3.8 million barrels versus the expectations for a drop of 2.1 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub increased to 46.26 million barrels by 3.66 million according to EIA data.
Brent crude futures, the benchmark, for April dropped $1.83 at $58.70 after having hit a $57.80 intraday low earlier, extending declines from the $63 two-month high of Tuesday.
March delivery US crude dropped $2.05 at $50.09 per barrel after dropping as low as $49.15.
Gene McGillian, analyst at Tradition Energy said, “The report is basically bearish because you continue to add crude to storage, showing it will take some time for the drops in rig counts to have an impact on supply.”
The Wall Street Journal quoted Ric Navy, senior vice president for energy futures at brokerage R.J. O’Brien & Associates as having said, “You pretty much stopped the rally in its tracks. Supply still outweighs demand overall.”
Carsten Fritsch, oil analyst at Commerzbank said, “Tomorrow we could see a recovery in expectation of another sharp drop in the rig count. The focus is again back on the oversupply. The big question is for how long?”
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