US Crude Oil Stockpiles Rise Again As Summer Demand Wanes - Energy Agency

US crude oil stockpiles increased last week after an unusually large drop in exports, according to data from the US Energy Information Administration (EIA) that suggests waning demand for energy toward the end of the summer

NEW YORK (UrduPoint News / Sputnik - 04th August, 2021) US crude oil stockpiles increased last week after an unusually large drop in exports, according to data from the US Energy Information Administration (EIA) that suggests waning demand for energy toward the end of the summer.

US commercial crude oil inventories rose by 3.6 million barrels in the week to July 20 to 439.2 million barrels, the EIA said in its Weekly Petroleum Status Report released on Wednesday.

Analysts polled by US media had expected a drawdown of 3.1 million barrels instead.

Inventories increased as US crude exports fell below the long-breached 2 million barrels per day mark to reach 1.9 million barrels during the week to July 20 from the 2.4 million barrels noted in the week to July 13.

It was only the second time in 11 weeks that the EIA had reported a build in crude stocks. The other nine weeks of drawdowns had taken almost 50 million barrels off the market.

Gasoline inventories also fell by 5.292 million barrels last week, the EIA said, compared with analysts' expectations for a 1.780 million-barrel draw.

The weekly build in crude suggested that demand for energy might be slowing as the novel coronavirus Delta variant cases have increased again, according to analysts who also noted that gasoline consumption could decline hereon as schools and colleges reopen in the United States.

"The Delta variant is slowly beginning to make a negative impact on global energy demand," John Kilduff, founding partner at New York energy hedge fund Again Capital, told Sputnik. "Also, last week was probably one of the last few hurrahs for kids who'd be returning to schools and colleges in the US soon. So it isn't surprising that you had an unusually large drawdown in gasoline."

Oil prices continued their decline for a fourth straight day on the EIA data, with US crude prices falling below the key $70 per barrel support.

By noon (16:00 GMT), West Texas Intermediate (WTI) crude, the benchmark for US oil, was down $2.44, or 2.4 percent, at $68.12 per barrel. WTI has lost 4.5 percent in three previous sessions.� London's Brent, the global benchmark for oil, was down $1.97, or 2.7 percent, at $70.44. Brent lost 4 percent in three previous sessions.