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Inventories Rise Again
It’s been more of a mixed week for oil markets following the firm rally seen over recent weeks. The latest report from the Energy Information Administration showed that in the week ending May 22nd, US crude stores rose by a further 7.9 million barrels.
This increase puts an end to the recent run of three consecutive weekly drawdowns. It is in stark contrast to the 1.9 million barrel drawdown the market was looking for.
The report was not totally bearish, however. Gasoline inventories were down 724k barrels over the week to 255 million barrels. This was against expectations of a 100k barrel rise and reflects the gradual but ongoing pickup in demand as more motorists return to the roads amidst lockdowns easing in the US.
However, distillate stockpiles, which include diesel and heating oil, were higher again also rising by 5.5 million barrels over the week to 164.3 million barrels. This was...
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