Weekly US oil inventories jump sharply

US crude oil and product stockpiles increased sharply during the latest reference week, despite a drop in imports.

Weekly US oil inventories grew by 2.8m barrels a day during the week ending on 20 January, according to the Energy Information Administration, the US Department of Energy´s statistical arm.

Gasoline inventories increased even more sharply, jumping by 6.8m barrels while those of distillates were virtually unchanged.

Imports of crude oil on the other hand decreased 568,000 barrels a day from the previous week.

Refineries in the States operated at 88.3% of their capacity last week.

In a separate report released on the same day, the EIA forecast global consumption of oil and other liquids would rise more quickly than production over the next two years, leading to tighter global balances.

Global production would average 96.4m b/d in 2016, 97.5m b/d in 2017 and 98.9m b/d in 2018.

Meanwhile, consumption was expected to reach average rates of 95.6m b/d in 2016, 97.2m b/d in 2017 and 98.7m b/d in 2018.

Hence, stocks would build by 0.3m b/d over 2017 and by 0.1m b/d in the following year, the IEA said.

As of 1547 GMT front month West Texas Intermediate crude oil futures were lower by 0.777% to $52.77 a barrel.