WASHINGTON (Sputnik) – US crude stockpiles rose again last week, resuming their uptrend for the fifth time in six weeks, the Energy Information Administration (EIA) reported as raw oil prices standing at seven-year highs slowed purchases by refiners who buy the material to make fuel products such as gasoline and diesel.Crude stockpiles rose by 3.29 million barrels during the week to October 29, after the previous week’s rise of 4.27 million, the EIA’s Weekly Petroleum Status Report showed. Crude inventories have risen some 20 million barrels over the past six weeks, EIA historical data showed.Analysts polled by US media had expected crude stocks to build by just around 2.25 million barrels in the latest week.The refinery utilization rate for last week remained at below 90% to capacity as crude prices for deferred delivery remained at a discount to prompt oil.”The refiners are certainly contributing to the crude build by trying to lock in barrels for later delivery at a more economical rate,” John Kilduff, founding partner of energy hedge fund Again Capital, said.On the fuel products side, distillates, which include diesel, saw their first build in ten weeks, growing by 2.16 million barrels versus forecasts for a draw of 1.25 million.
To offset the distillates build, gasoline drew down by 1.49 million barrels versus an expected decline of just 1.25 million. Gasoline inventories have fallen by a total of 11 million barrels over the past four weeks.
Wall Street Hits Record Highs for 2nd Straight Day on Energy, Consumer Stocks Rally1 November, 22:12 GMTCrude prices tumbled on the build reported by the EIA, with West Texas Intermediate, the US benchmark, down $2.96, or 3.5%, at $80.95 per barrel by 12 noon on Wednesday. WTI hit seven-year highs above $85 last week.
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