Earlier this morning the Department of Energy (DoE) released energy inventories for the latest week. In the crude oil space, traders were expecting stockpiles to rise by 2 million barrels, but the actual increase came in at just 230K barrels. Even though the build was lower than expected, crude oil inventories are still at all-time record highs.
While crude oil inventories actually increased this week, stockpiles of gasoline declined. While traders were looking for a decline of 400K barrels, the actual decline was more than twice that at 910K barrels. As a result of that decline, gasoline stockpiles are increasingly falling to levels that are in-line with the historical average.
Overall, this week's moves in energy inventories reinforced the notion that the US is awash in crude, while gasoline stockpiles are running in-line with their historical average.