API reports strong increase in US crude oil stocks

Oil prices have stabilized at a low level. Since they are not profiting from the rising prices in other commodity segments, however, they are showing relative weakness. The ongoing high level of oversupply on the oil market is blocking any increase in oil prices. 

After the close of trading yesterday evening, the API reported an unexpectedly sharp 9.4 million barrel surge in US crude oil stocks last week. Crude stocks at Cushing also grew by a significant 1.4 million barrels. 

The US Department of Energy will be publishing the official inventory data this afternoon. In view of the very low crack spreads, the 3-2-1 crack spread in the US calculated by Bloomberg is currently at its lowest level in nearly five years, there is less incentive for US refineries to process crude oil, notes Commerzbank.