This week’s inventory report from the Department of Energy showed a much larger than expected build in crude oil inventories.  While traders were expecting stockpiles to increase by 1 million barrels, the actual increase was nearly seven times that at 6.634 million.  With this week’s build, US inventories are now back to multi-decade highs, and are currently 194 million barrels (52%) above their historical average for this time of year.  Looking ahead, over the next few weeks we should start to see the seasonal build in inventory levels transition to drawdowns as we enter the summer season.

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