Commodities

Oil Inventories Surprise with 2.5M Barrel Jump Last Week: API

U.S. crude oil inventories saw an unexpected increase last week, as reported by the API, which has raised concerns about demand as the summer driving season approaches.

Following the report, the U.S. benchmark crude traded at $78.23 a barrel, having previously settled down by 0.7% at $79.26 a barrel.

For the week ending May 17, crude stocks rose by approximately 2.5 million barrels, contrasting with a decline of 3.1 million barrels reported for the previous week. Economists had anticipated a decrease of 3.1 million barrels.

The API report also indicated an increase in gasoline inventories by 2.1 million barrels, while distillate stocks experienced a drop of 320,000 barrels.

This rise in gasoline stockpiles coincides with the Biden administration’s announcement to sell 1 million barrels of gasoline from strategic reserves located in the Northeast, aimed at reducing gas prices before the summer travel season begins.

Additional details are expected to be released in the upcoming report.

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