Oil Slumps After Huge Jump in Crude Stockpiles By Investing.com

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Investing.com – U.S. oil inventories soared for the latest week, the Energy Information Administration reported Thursday, rising much more than the market was expecting.

jumped 9.3 million barrels last week, the EIA said. That compared to analysts’ expectations for a rise of about 2.9 million barrels, according to forecasts compiled by Investing.com.

fell 0.8% to $52.95, extending losses is showed before the report was released, while global benchmark was off 1% to $58.83.

“Refiners are really socking the oil bulls with their maintenance and it’s telling with this humongous crude build, which is more than triple last week’s,” Investing.com analyst Barani Krishnan said. “Not helping is the production, which remains at a record 12.6 million bpd.”

fell by 2.56 million barrels, versus expectations for a drawdown of about 1.21 million barrels. fell by 3.8 million barrels, with analysts predicting a decline of about 2.4 million barrels.

“The only bright spots here, if any, are the precipitous drops in fuel stockpiles, particularly distillates,” Krishnan said.

“There’s continuous talk that the new IMO rules for maritime fuels is behind this drawdown in distillates and we’ll see how accurate that is when the refiners finally come out their maintenance,” he added.

The market was likely prepared for a larger-than-anticipated number today. The API estimated yesterday that crude stockpiles jumped 10.5 million for the week ended Oct. 11.

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