WTI bounces back after latest weekly DoE inventory data

Commercial crude oil inventories in the US rose unexpectedly over the latest week, helped by rising imports and domestic production.

For the week ending on 20 April, the Energy Information Administration, the Department of Energy's statistical arm, reported a 2.2m barrel build (consensus: -2.0m) in the country's stockpiles to reach 429.7m barrels.

Gasoline inventories also built, by 0.8m barrels, although those of distillates were run down by 2.6m barrels.

In parallel, imports ran at an average rate of roughly 8.5m b/d, rising by 539,000 b/d in comparison to the prior week.

Meanwhile, domestic US oil output was again higher, increasing by 46,000 b/d to hit 10.586m b/d, the EIA said in a separate report.

Refineries operated at 90.8% of capacity, less than during the previous week, the government said.

To take note of, Wednesday's government report echoed results from the private-sector compiled figures published by the American Petroleum Institute the day before.

Commenting on the data, Thomas Pugh at Capital Economics also pointed out a 0.7m barrel decline in America's Strategic Petroleum Reserves during the week, which in his opinion might explain some of the unexpected build in oil stocks.

Pugh also told clients he still expected "surging US crude production to lead to lower prices later in the year."

Gasoline demand had also fallen back after a surge in demand during the prior week (when it a record pace), alongside some refineries being forced to shut down to carry out "essential" maintenance which had been deferred, he added.

"[Nonetheless] consumption is still up by almost 2% y/y so far in April".

As of 1653 BST, West Texas Intermediate crude oil futures for next month delivery were higher by 0.074% at $67.75 a barrel.