U.S. commercial crude oil inventories surged 6.77 million barrels (Mmbbl) in the week ended May 31, the Energy Information Administration reported Wednesday, Kallanish Energy learns.
That beat an earlier projection from the American Petroleum Institute that showed stockpiles rising 3.5 Mmbbl during last week. Analysts had expected a decrease of 849,000 Bbls, according to a Reuters poll.
The 6.77 Mmbbl jump in stocks was the largest weekly increase since the 9.9 Mmbbl jump for the week ended April 26, which was the biggest of 2019 year-to-date.
Crude oil inventories jump in final week of May
|Week ended||Volume stored||Change from previous week|
|May 31||483.26 million barrels||6.77 million barrels|
|May 24||476.49 Mmbbl||-0.29 Mmbbl|
|May 17||476.78 Mmbbl||4.74 Mmbbl|
|May 10||472.04 Mmbbl||5.44 Mmbbl|
|May 3||466.60 Mmbbl||-3.97 Mmbbl|
(Source: Energy Information Administration)
Commercial crude supplies, excluding those in the Strategic Petroleum Reserve, now total 483.3 million barrels — roughly 6% above the five-year average for this time of year, EIA said.
EIA data also revealed gasoline inventories climbed 3.2 Mmbbl, while distillate fuel stockpiles, including diesel and home heating oil, added 4.6 Mmbbl last week.
To prevent oversupply and prop up the market, Opec+, a group which includes most Opec members along with a number of non-Opec producers led by Russia, has withheld production totaling 1.2 million barrels per day (Mmbpd) since the start of the year.
The group will set its policy through at least the end of the year when it meets later this month or in early July.
Underlining concerns about oversupply, the head of oil giant Rosneft Igor Sechin said on Tuesday that Russia should pump at will and he would seek compensation from the government if cuts were extended.
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