Article by ForexTime
Crude prices moved lower on Wednesday following bearish results from both the API and EIA inventory reports. Crude oil imports flooded the market easily making up for any decline in rig counts or reduction in production. Crude oil, gasoline and distillate inventories built pushing crude and gasoline to historic highs.
According to the EIA U.S. crude oil imports averaged over 7.7 million barrels per day last week, up by 414,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged about 7.4 million barrels per day, 0.5% above the same four-week period last year.
U.S. commercial crude oil inventories increased by 1.2 million barrels from the previous week. Expectations were for a decline of 1.5 million barrels. Total gasoline inventories increased by 0.1 million barrels last week, and are well above the upper limit of the average range. Distillate fuel inventories increased by 3.1 million barrels last week and are in the upper half of the average range for this time of year.
On the demand front, total products demand over the last four-week period averaged over 19.6 million barrels per day, down by 1.6% from the same period last year. Over the last four weeks, gasoline demand averaged about 9.2 million barrels per day, down by 0.6% from the same period last year. Distillate fuel demand averaged over 3.8 million barrels per day over the last four weeks, down by 0.9% from the same period last year.
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