In contrast to Tuesday’s report by the API – which showed a drop in U.S. crude inventories last week – yesterday the EIA reported that last week, stockpiles grew by 6.5 million barrels. This was nearly three times what analysts were predicting and it represents the fourth straight week of growth.
This growth happened despite the fact that refinery throughput was up, crude oil exports were lower and U.S. crude production was down by 300,000 barrels per day as offshore facilities shut down in anticipation of Hurricane Michael. All of this points to a potential oversupply of oil in the U.S. and it took its toll on prices.
WTI dropped $2.18 yesterday to close at $70.05 per barrel.
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