In an unsurprising sign, US crude oil inventories grew for a third straight week and four of the last five periods according to figures released by the Energy Information Administration on Wednesday. US stockpiles rose by 2.840 million barrels, beating expectations of 2.815 million and the prior week’s reading of 2.347 million. Meanwhile, in a sign that the growing number of active US drill rigs is adding to upside in production, output rose to 8.961 million barrels per day last week in a sign that US production will continue to trend higher over the coming months.
Besides crude oil, gasoline stockpiles continued to rise, with supplies now 3.40% above level reported a year earlier. However, the more concerning development is falling demand which contracted by 3.62% over the last four weeks. After slipping on the news, WTI futures have managed to retake the $53.00 per barrel level.