Oil Rally Slows On Surprise Crude Build
By Julianne Geiger,OILPRICE – Apr 02, 2019, 3:52 PM CDT
The American Petroleum Institute (API) reported a build in crude oil inventory of 3.0 million barrels for the week ending March 29, coming in over analyst expectations of a 425,000-barreldraw.
Last week, the API reported a surprise build in crude oil of 1.93 million barrels. A day later, the EIA confirmed the build, estimating that crude inventories had grown by 2.8 million barrels.
Including this week’s data, the net build is now 3.43 million barrels for the twelve reporting periods so far this year, using API data.
WTI was trading up on Tuesday in the run up to the data release at $62.60, up $1.01 (+1.64%) on the day at 3:21pm. The Brent benchmark was trading up at $69.43, up $0.42 (+0.61%) at that time. Both benchmarks are up week on week and represent new highs for 2019 as US output saw small declines and global inventories appear to have abated somewhat.
The API this week reported a draw in gasoline inventories for week ending March 29 in the amount of 2.6 million barrels. Analysts estimated a smaller draw in gasoline inventories of 1.542 million barrels for the week.