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Oil: Unexpected increase in US inventories ‘crashes’ prices despite OPEC

U.S. oil and gasoline inventories showed an unexpected rise last week, which appeared to directly offset pressures on crude prices after OPEC+ decided to subtly increase output.

In particular, as the US Energy Information Administration (EIA) informed, the country’s crude oil inventories increased by 4.5 million barrels in the week to July 29, when analysts in a Reuters survey expected a drop of around 600,000 barrels. .

It is typical that after the announcement, oil prices, which had taken the rise in the wake of the extremely “tight” approach of OPEC+, immediately erased their gains and returned to negative territory with losses exceeding 2%.

In particular, his October contract Brent after reaching as high as $102.4 a barrel is now trading at $98.1 with losses 2.4%.

The fall in US crude is even greater WTIwhich sees its own September contract from intraday highs of $96.6 now moving to $91 with a fall 2.5%.

Among other things, crude inventories at the Cushing, Oklahoma, delivery hub for US futures contracts rose by 926,000 barrels a week, according to the EIA.

At the same time, US gasoline inventories rose by about 200,000 barrels in the week to 225.3 million barrels, while analysts had widely expected a sharp decline of 1.6 million barrels.​​

Distillates, which include diesel and heating oil, underperformed and saw inventories fall by 2.4 million barrels in the week, against expectations for a 1 million barrel gain.

Finally, net crude imports rose by 2.21 million barrels per day, according to the EIA.

Source: Capital

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