Oil prices par gains after EIA data points to growing glut

Jessica Morris
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WTI crude fell below $30 per barrel yesterday (Source: Getty)

The brief relief for oil prices was short-lived today, after weekly data showed that gasoline and distillate inventories rose more than expected.

The news sent Brent crude, the global benchmark, down 0.1 per cent to $30.83 per barrel. Meanwhile, West Texas Intermediate crude, the US benchmark, shed 0.02 per cent to $30.84 per barrel.

Gasoline stocks rose by 8.4 million barrels, compared with analysts' expectations in a Reuters poll for a 2.7 million barrels gain. Last week, the stockpiles rose more than 10 million barrels, the largest build since 1993.

Distillate stockpiles, which include diesel and heating oil, rose by 6.1 million barrels, versus expectations for a 2 million barrels increase, the data from the Energy Information Administration (EIA) showed.

The report also showed crude inventories rose by 234,000 barrels in the last week, compared with analysts' expectations for an increase of 2.5m barrels.

"At 482.6m barrels, US crude oil inventories remain near levels not seen for this time of year in at least the last 80 years," The EIA said.

Meanwhile, crude stocks at the Cushing, Oklahoma, delivery hub rose by 97,000 barrels.

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