Crude reserves mismatch forecasts and gain

According to the U.S. Energy Information Administration, crude oil reserves rose against expectations during the week ending June 7. Crude Oil Inventories rose by 2.5 million barrels to 393.8 million, which is above the average range for this time of the year. Expectations were for a 1.5 million barrels decrease according to a Bloomberg survey. Last week oil reserves fell by 6.267 million barrels.

The EIA reported gasoline stockpiles rose by 2.7 million barrels last week and were also above the average range for this time of the year. According to a Bloomberg News survey, gasoline reserves were forecast to drop by 500 000 barrels, after they fell by 366 000 in the preceding week.

Distillate fuel inventories marked a decrease of 1.2 million barrels during the week ending June 7 and remained lower than the average range. According to Bloombergs survey, distillate reserves should have risen by 1.5 million barrels.

On the New York Mercantile Exchange, WTI crude for remained 0.22% higher on the day, despite the bearish oil reserve news. WTI futures for July delivery traded at $95.59 at 14:50 GMT, ranging between days low of $94.47 and high at $96.29.

Brent oil also traded higher on the day, marking a 0.44% gain. The European benchmark stood at $103.45 a barrel at 14:50 GMT. Prices ranged between days low at $102.27 and high at $103.92.

On Tuesday, OPEC cut its global demands forecast. The group trimmed its expectations for 2013 world demand growth by 10 000 barrels per day to 780 000. Natalie Rampono commented: “The fact that they are making ongoing downgrades, I think that’s also weighing on sentiment.”

The U.S. Energy Information Administration reported on Tuesday that it expects shale oil reserves to be around 58 billion barrels, up from 32 billion in 2011. The world’s shale oil reserves currently cover a decade’s consumption, the EIA said.