Energy

Big Gain in Oil Inventory Takes Toll on Crude Prices

The Department of Energy is out with its weekly oil inventory data showing a surprise build-up of crude products. The DOE showed that crude oil Stocks rose by 2.717 million barrels to 380.1 million barrels in the week. We were expecting closer to flat, but Dow Jones was calling for a drop of 800,000 barrels. United States Oil (NYSEMKT: USO) has fallen sharply and is now down 1.5% at $32.66 so far.

Gasoline stocks rose a sharp 4.134 million barrels to 210.04 million barrels. The estimate from Dow Jones was for a drop of 500,000. We were expecting a flat reading. United States Gasoline (NYSEMKT: UGA) also fell on the news and is now down by over 2% at $51.28 on the day.

We do not track distillate stocks but these also rose by 1.708 million barrels to 125.239 million barrels. Dow Jones had an estimate of +1.1 million barrels.

The big gain also came in refineries, which ran at a high level of 93.0%. Last week it was 92.0%, and Dow Jones was calling for 91.8%. Phillips 66 (NYSE: PSX) has not really reacted to the higher refining rates and shares are down 0.75% at $34.97, while Valero Energy Corp. (NYSE: VLO) is down by 1.5% at $24.82.

The oil and gas services companies have seen shares pop then drop so far this morning considering this report. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is still down, but off its lows as shares are down 0.4% at $37.12 on the day.

JON C. OGG

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.