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Oil Tanks After API Reports Biggest Build To U.S. Crude Stocks Since March

This week’s American Petroleum Institute (API) reported a massive 9.3 million barrel build in United States’ crude oil supplies – the largest increase since March of this year.

Experts polled by ZeroHedge expected a seasonally consistent 1.54-million-barrel build, but instead, API figures show the largest jump in inventories for eight months.

Distillate supplies saw the sixth straight week of declines, but supplies at Cushing, Oklahoma saw the largest spike in three months.

Gasoline supplies experienced the largest decline in two months, down 3.5 million barrels against the more modest one-million-barrel drop that was forecasted.

West Texas Intermediate crude prices sank 1.13 percent with the report’s release, stabilizing at $46.33. Brent prices traded down 1.42 percent at $47.92 at the time of this article’s writing. Oil had rallied earlier in the day on a slipping dollar, and after Colonial Pipeline had to shut down its main pipeline for a second time in as many months following an explosion. WTI had reached as high as $47.35 on Tuesday.

ZeroHedge noted that domestic crude inventories are still 29 percent higher than the seasonal average.

“The global glut continues to march on,” Phil Streible, senior market strategist at RJO Futures in Chicago, told the economics blog.

Tomorrow’s official inventory report from the Energy Information Administration (EIA) will determine whether the API’s numbers are accurate, and will no doubt swing markets back upward should the EIA determines there was in fact a more modest build.

By Zainab Calcuttawala for Oilprice.com

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  • Mark Taylor on November 02 2016 said:
    Have you forgotten that last week, they report a huge build and EIA reported a draw? API is just not reliable information.
  • michael on November 02 2016 said:
    massive build that's only equivalent to one days worth of Saudi production give me a break these reporters must be short the oil futures LOL
  • A. Ozaydin on November 01 2016 said:
    Depending on the age of storage tank, each could be storing up to 10-15% of their inventory (to a height of 1.m from floor) as mud, dirt, pipeline debris which is useless for refining purposes and should be deducted from general oil inventories. New storage tanks has no such a problem but almost every floating storage tank contains a sizable percentage of its inventory as useless debris, mud.

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