Brent drops after US crude stock rise for the second straight week

Front-month ICE Brent crude futures dropped by $0.63/bbl in the first hour after the official weekly oil figures from the US Energy Information Administration (EIA) were released today.

PHOTO: Oil field with pump jacks in Bakersfield, US. Getty Images

Commercial crude oil inventories in the US rose by 3.73 million bbls to 460 million bbls in the week ending 7 June. The crude inventories have increased for the second consecutive week.

Higher crude imports have contributed to the weekly stock build. According to EIA data, US crude oil imports averaged 8.30 million b/d last week, up by 1.24 million b/d from 7.06 million b/d in the week prior. 

The country's refinery utilisation fell by 0.40 percentage points to 95% last week. But, refinery utilisation has remained above 90% for the fifth consecutive week.

Gasoline stocks increased by 2.56 million bbls on the week to 234 million bbls – the highest since March.

Distillate stocks, which include diesel and gasoil, increased by a more modest 881,000 bbls to 123 million bbls.

By Nithin Chandran

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