Oil prices edge down as US fuel stockpiles grow more than expected

Oil prices edge down as US fuel stockpiles grow more than expected

Gasoline stockpiles climb 7.5 million barrels, far exceeding analyst expectations for a 2.8 million-barrel gain.

Crude oil storage tanks stand in the Juaymah tank farm at Saudi Aramco’s Ras Tanura oil refinery and terminal at Ras Tanura, Saudi Arabia. (Bloomberg pic)
SYDNEY:
US oil prices inched down on Thursday, with traders worried about the strength of demand in the United States after gasoline stockpiles there grew last week by far more than analysts had expected.

US West Texas Intermediate (WTI) crude futures were at US$52.20 per barrel at 0022 GMT, down 11 cents, or 0.2%, from their last settlement. WTI futures closed up 0.4% on Wednesday.

International Brent crude oil futures had yet to trade, after closing up 1.1% in the previous session.

“While (US) inventories fell slightly more than expected, there was a large build in gasoline inventories. This stoked fears of weak demand in the US,” ANZ Bank said in a research note.

The US Energy Information Administration (EIA) said in a report on Wednesday that crude production rose last week to a record 11.9 million barrels per day (bpd), as crude exports jumped close to all-time highs near 3 million bpd.

However, gasoline stockpiles climbed 7.5 million barrels, far exceeding analyst expectations in a Reuters poll for a 2.8 million-barrel gain. At 255.6 million barrels, gasoline stocks were at their highest weekly level since February, 2017.

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