US crude supplies reach 80-year high
US crude supplies have hit the highest level since July 1924, a new report has shown.
On Thursday, US Energy Information Administration (EIA) said crude inventories rose by 10.1m barrels in the week ended 16 January, way above analysts' expectations which had forecast an increase of 2.5m barrels for the period.
At 387.9m barrels, US crude oil inventories “are at the highest level for this time of the year in at least the last 80 years,” the EIA said, adding the glut in supply was due to lower refinery runs as US crude production remained unchanged at 9.2m barrels a day.
In February, refineries will enter the so-called “maintenance season” ahead of the spring and summer driving season, and the EIA said refineries ran at 85.5% capacity, the lowest level since March 2013.