Oil prices remain insensitive to the build-up of large crude inventories

The American Petroleum Institute (API) reported an increase in crude oil of 6.035 million barrels this week, while analysts predicted a draw of 200,000 barrels.

The construction comes as the Department of Energy released a record 8.4 million barrels of Strategic Petroleum Reserves in the week ending September 9, leaving the SPR with just 434.1 million barrels.

The previous week, the API reported a surprise rise in crude oil inventories of 3.645 million barrels after analysts predicted a drawdown of 733,000 barrels.

WTI fell ahead of the data release on Wednesday as U.S. inflation figures came in higher than expected, threatening oil demand. As of 12:50 p.m. ET, WTI was trading down $1.34 (-1.53%) on the day at $86.44 per barrel, up about $4 per barrel on the week. Brent crude was trading down $1.69 (-1.80%) on the day at $92.31, up $4 on the week.

U.S. crude oil production data for the week ending September 2 remained unchanged at 12.1 million bpd, according to the latest weekly data from the EIA.

API reported a decline in gasoline inventories this week of 3.23 million barrels for the week ending September 9, in addition to the previous week’s 836,000 barrels.

Distillate inventories rose 1.75 million barrels for the week, on top of last week’s increase of 1.833 million barrels.

Cushing’s stocks rose 101,000 barrels this week. Last week, the API saw a Cushing decline of 772,000 barrels. The official EIA Cushing inventory for the week ending September 2 was 24.783 million barrels, down from 25.284 million barrels the previous week.

Oil prices were still lower after the release, with WTI trading at $87.61 (-0.19%) and Brent at $93.42 (-0.62%).

By Julianne Geiger for Oilprice.com

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