U.S. Crude-Oil Stockpiles Post Unexpected Weekly Build

U.S. commercial crude-oil inventories increased by 4.7 million barrels during the week ending November 6, bringing total stockpiles to 414.4 million barrels, according to Energy Information Administration data released Thursday. The build was unexpected and leaves crude inventories 4% below the five-year average for this time of year. Total commercial petroleum inventories rose by 11.4 million barrels over the same period. The EIA figures follow American Petroleum Institute data released a day earlier that showed a larger 9.0 million-barrel crude build.

Gasoline inventories grew by 1.8 million barrels after a 200,000-barrel draw the prior week, while average daily gasoline production fell to 9.6 million barrels. Distillate stockpiles rose 4.1 million barrels with production decreasing to 5.1 million barrels per day; distillate inventories remain 8% below the five-year average. Total products supplied, a proxy for U.S. oil demand, averaged 20.8 million barrels per day over the last four weeks, up 0.9% from the same period last year. Four-week average gasoline demand stood at 8.7 million barrels per day, while distillate demand averaged 3.9 million barrels per day, up 4.2% year over year.

Oil futures were mixed Thursday morning. Brent crude traded at $93.29 a barrel, up $0.53 (+0.57%) on the day but down roughly $7.50 from a week earlier. West Texas Intermediate was at $86.31, down $0.22 (-0.25%) on the day and also down nearly $7.50 from last Wednesday. Oil prices are on track for a second weekly loss despite fresh attacks in the Middle East.