Weekly crude oil stocks rose 1.029 million barrels to 358.63 million and are 20.817 million barrels above year ago levels, according to information released by the U.S. Energy Information Administration (EIA). The larger than expected build in inventories was helped by a surge in crude oil imports to 9.024 million barrels per day.
The crude oil complex seemed to benefit during the early morning hours, aided by a softening U.S. Dollar and an improvement in risk attitudes. Some traders noted that the markets acted a little reserved with respect to this morning's positive U.S. economic data and a rally in other physical markets as they braced for this morning inventory data.
Some traders indicated that while the final result was higher than expectations, it was considerably lower than early indications Tuesday afternoon. The refinery operating rate also increased 1.50% during the report week to 85.50%.
While both the gasoline and distillate inventory data failed to show a draw in line with expectations, it seemed that the trade wanted to focus on the headline crude oil number and improving demand statistics. The natural gas market will receive the latest EIA inventory data today, which comes a day earlier due to the thanksgiving holiday.
