19-07-2018 03:45 PM
Oil prices dropped on Thursday soon after figures from the Energy Information Administration (EIA) revealed a surprising build in U.S. crude stockpiles accompanied by a rush in imports.
According to the data the EIA released on Wednesday - Inventories of U.S. crude increased by 5.836 million barrels for the week ended July 13, match up to to outlook for a draw of 3.622 million barrels.
The surprising build in crude supplies came as imports rose by 1.635 million barrels a day (bpd) and production rose to a record 11 million bpd, the EIA said.
The build in crude was restricted to a certain extent by augmented refinery activity, stimulating more than expected turn down in product inventories.
In the meantime, U.S. inventories of gasoline, diesel and heating oil unpredictably dropped last week.
According to the EIA, Gasoline inventories fell by 3.2 million barrels the previous week, while distillate stockpiles, which comprise of diesel and heating oil, fell by 371,000 barrels.
Experts had beforehand predicted that gasoline stocks would be unaffected and distillate stockpiles would show a build of around 900,000 barrels.
The United States has included nearly 1 million bpd in output since November, thanks to swift augmented in shale drilling.