Crude Oil Inventories Unexpectedly Rise

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This week's inventory report from the DoE showed that oil inventories unexpectedly rose 4.2 mln barrels versus forecasts for a drawdown of a half-million barrels. This week's build in inventories is especially noteworthy as it occurred during the time of year where we typically see drawdowns in oil stockpiles. The chart below shows this year's weekly inventory levels relative to the historical average since 1984. As shown, inventory levels typically peak in early May ahead of the Summer and continue to decline through September.

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