Crude oil inventories showed an unexpected build this week adding pressure to what has already been a tough couple of weeks for crude oil prices. According to the weekly survey from the Department of Energy (DoE), crude oil stockpiles increased by 1.413 million barrels compared to consensus expectations for a decline of 1.438 million. With this week’s increase, crude oil stockpiles are currently 186 million (52%) above their historical average for this time of year.
One of the big concerns for oil bulls has been the build in stockpiles that we have seen in the last two weeks. As shown in the top chart, the two-week increase in stockpiles that we have seen this week comes at a time when inventories are usually declining.