This week's reports of energy stockpiles from the Department of Energy (DoE) showed larger than expected builds of both crude oil and gasoline. While traders were expecting crude inventories to ride by 750K barrels, the actual build was 2.953 million barrels. This represents the tenth straight week that inventory levels have increased, which is a streak that has only occurred three other times since 1984. The lower chart compares current inventories relative to average, and as you can see inventories are higher relative to average than at any other time this year.
Click to enlargeWith regards to gasoline stockpiles, traders were expecting a build of 500K barrels but the actual build was more than three times that 1.751 million barrels. While crude oil stockpiles have risen for ten straight weeks, this week's build in gasoline stockpiles actually broke a string of six straight weekly declines.