U.S. crude oil futures tumble after U.S. data shows a surprise rise in domestic crude inventories and the first increase in four weeks; WTI crude -1.2% at $73.25/bbl, Brent -0.1% at $78.16/bbl.
U.S. crude inventories rose by 1.2M barrels in the week ended June 29, compared with expectations for a large decrease; however, crude stocks stored at the Cushing, Okla., trading hub fell by 2.1M barrels in the latest week to 27.8M barrels.
The production outage at Syncrude Canada had been expected to result in a big storage draw, but instead the report shows a more normal U.S. supply-demand picture after the biggest stockpile reduction since 2016 a week earlier, says Mizuho analyst Robert Yawger.
“It’s going to suck some of the overbought momentum out of the market,” Yawger says.
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