Weekly gasoline stocks increased while imports declined in the U.S., the country's Energy Information Administration (EIA) announced Wednesday.
"Markets’ attention focused in part on the build in gasoline stocks, which is unusual during the U.S. driving season," Simon MacAdam, assistant economist at Capital Economics, wrote in the London-based research consultancy's U.S. Weekly Petroleum Status Report.
Despite the rise in domestic gasoline consumption during the summer season, inventories of gasoline in the country increased by 1.21 million barrels, or 0.5 percent, to reach 240.1 million barrels for the week ending July 8, according to the EIA.
"Today’s report reinforces fears that there is a supply glut in petroleum products," he added.
After the release of the EIA's report, oil prices were down more than 4 percent. American benchmark West Texas Intermediate dropped to $44.80 with a 4.1 percent decline, while the international benchmark Brent crude fell to $46.38 with a 4.3 percent loss around 7:20 p.m. GMT.
Meanwhile, U.S. oil imports decreased by 522,000 barrels per day (bpd) during the same period, to reach 7.84 million bpd for the world's biggest oil consumer.
"Decline in net imports was the principal driver of the crude stocks draw," MacAdam said.
Commercial crude oil stocks in the country fell by 2.55 million barrels, or 0.5 percent, to reach 521.8 million barrels for the week ending July 8.
However, this was not enough to beat market expectations that anticipated a weekly decline of 2.95 million barrels. During the previous week, crude inventories in the country fell by 2.22 million barrels.
Strategic Petroleum Reserves in the U.S. remained unchanged at 695.1 million barrels.
By Ovunc Kutlu in New York
Anadolu Agency
ovunc.kutlu@aa.com.tr
