Oil’s 5 percent tumble Wednesday, the biggest slide since March, followed government data that showed U.S. crude and fuel stockpiles unexpectedly soaring at a time of year when they normally decline. Total U.S. inventories of crude oil and products such as gasoline and diesel fuel surged the most since 2008 last week, according to the Energy Information Administration. The 15.5 million-barrel jump took investors by surprise, sending the market off a cliff. What caused the increase? Higher imports of crude, as well as a sharp decline in exports. Add in a 505,000 barrel a day drop in gasoline demand and you end up with growing stockpiles. Click Read More below for more of the story.
•The U.S. Energy Information Administration yesterday cut its 2019 world oil demand growth forecast by 160K bbl/day to 1.22M bbl/day, a 15% cut from the prior month’s forecast, playing into concerns about global economic growth driven partly by trade tensions between the U.S. and China.
•U.S. crude inventories spiked by 4.85M barrels in the week ended June 7 to 482.8M barrels, according to data from the American Petroleum Institute, compared with analyst expectations for a decrease of 481K barrels.
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