The American Petroleum Institute (API) has estimated a major crude oil inventory build of 10.45 million barrels for the week ending October 10-compared to analyst expectations of a much smaller 2.878-million-barrel build.
Last week saw a large build crude oil inventories of 4.13 million barrels, according to API data. The EIA estimated that week that there had been a smaller build of 2.9 million barrels.
After today's inventory move, the net draw for the year is 15.27 million barrels for the 42-week reporting period so far, using API data.
Oil prices were trading up on Wednesday prior to the data release after rebounding from persistent grim economic growth outlooks, the most recent of which came from the International Monetary Fund, which said that it sees global economic growth slipping to just 3% this year-the slowest rate of growth since the 2008 financial crisis.
At 3:42pm EDT, WTI was trading up $0.48 (+0.91%) at $53.29-up $0.70 week over week. Brent was trading up $0.60 (+1.02%) at $59.34, roughly flat week on week.
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The API this week reported a draw of 934,000 barrels of gasoline for week ending October 10. Analysts predicted a larger draw in gasoline inventories of 1.381 million barrels for the week.
Distillate inventories fell by 2.862 million barrels for the week, while inventories at Cushing rose by 1.648 million barrels.
US crude oil production as estimated by the Energy Information Administration showed that production for the week ending October 4 increased to 12.6 million bpd, another new all-time high.
At 4:43pm EDT, WTI was trading at $53.32, while Brent was trading at $59.34.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More