Oil inventories unexpectedly rise by 483,000 barrels last week: API
Investing.com — U.S. crude stockpiles unexpectedly increased last week, the API reported Wednesday, at a time when concerns about demand continue to rise following weaker growth from China.
Crude Oil WTI Futures, the U.S. benchmark, traded at $72.75 a barrel following the report after settling up 0.2% at $72.56 a barrel.
U.S. crude inventories rose by 939,000 barrels for the week ended Jan. 12, compared with a draw 5.2 million barrels reported by the API for the previous week. Economists were expecting a decline of about 2.4M barrels.
The surprise rise in weekly U.S. stockpiles comes as investors weigh the prospect of supply disruptions — amid an escalation of attacks on ships in the Red Sea by the Houthi militant group in the Red Sea — and signs of weaker demand following weaker China growth data.
Chinese gross domestic product grew 5.2% year-on-year in the fourth quarter, slightly less than expected as the world's largest oil importer continued to grapple with a sluggish post-COVID recovery.
The API data also showed that gasoline inventories increased by 2.5M barrels last week, while distillate stocks increased by 600,000 barrels.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies decreased by about 2.4M barrels last week.
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