US Crude Oil Inventories Soar, Fuel Stocks Dip: EIA

“We know refiners are going to have to continue to run at a high rate to keep up with demand. And so the expectation is that the crude supplies are not going to build as dramatically next week,” said Phil Flynn, analyst at Price Futures Group.

David Gaffen, Reuters

U.S. crude oil stockpiles rose sharply last week, driven by an increase in inventories and as refiners cut output, the Energy Information Administration (EIA) said on July 7.

Crude inventories rose by 8.2 million barrels in the week to July 1, compared with analysts’ expectations for a draw of 1 million barrels. Much of that inventory came from another release of barrels from U.S. strategic reserves, which fell by 5.8 million barrels.

U.S. commercial stocks are at 423.8 million barrels, or about 10% below the average for this time of year, the EIA said. Prices have been running at high levels for months as refiners attempt to meet consumer demand.

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