After a big reported build in crude oil inventories from the API on Tuesday, this morning’s weekly inventory report from the Department of Energy showed an even larger build. While traders were expecting weekly inventories to rise by 3.5 million barrels, the actual increase was over 10.3 million barrels! That’s the largest weekly build in inventories since last April and the 13th largest weekly increase going all the way back to 1983.
The chart below shows the current levels of oil inventories in 2016 and compares those levels to the average of the last ten years and going back to 1983. Needless to say, there is quite a bit of room of space between current levels and average. At this rate, we are going to have to adjust the y-axis again! The lower chart shows the spread between current and average stockpiles, and at current levels inventories are 187 million (53%) above average for this time of year.