Oil futures dip following a surprise build in U.S. crude stockpiles

22-Dec-16

Brent crude oil futures dipped 1.5% to US$54.5, while U.S. crude futures dipped to US$52.4 a barrel. U.S. crude stocks rose by 2.3 mln barrels in the week to Dec. 16 as refineries hiked output, while gasoline stocks and distillate inventories fell, the U.S. Energy Information Administration said, as per CNBC. That was the first weekly build in crude stockpiles in 5 weeks. Analysts were expecting U.S. crude inventories to fall by 2.5 mln barrels, according to a Reuters poll.

The EIA report diverged widely from the American Petroleum Institute industry group's data released late on Tuesday, which showed a much larger-than-expected 4.1-million-barrel crude draw. Analysts said the API report had helped carry WTI futures to a one-week high earlier in the session.