By Yasin Ebrahim
Investing.com - U.S. oil stockpiles rose unexpectedly last week exacerbating the losses in oil prices amid easing optimism over the global oil demand recovery and a pullback on supply disruptions bets after the Suez Canal jam ended.
U.S. crude inventories rose by 3.91 million barrels last week, according to an estimate released Tuesday by the American Petroleum Institute, after a build of 2.9 million barrels the previous week. Gasoline inventories declined by about 6.0 million, compared with a 3.7 million draw in the prior week, while distillate stocks increased by about 2.6 million barrels.
Crude Oil WTI Futures, the U.S. benchmark for oil fell $1.17 a barrel on the news after settling down $1.01 at $60.55 a barrel.
The backdrop of lower prices comes amid a weaker outlook on demand recovery from OPEC . “While last month saw many positive developments, it also witnessed reminders of the ongoing uncertainties and fragility caused by the COVID-19 pandemic,” OPEC Secretary Mohammed Barkindo told the OPEC+ Joint Technical Committee on Tuesday, according to a statement.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies decreased by about 107,000 barrels last week.