MTECHTIPS;-Crude futures tumble 5% on unexpected rise in inventories

MTECHTIPS;-Crude futures tumble 5% on unexpected rise in inventories

MTECHTIPS-Crude futures settled lower, after data on Wednesday showed that supplies of U.S. crude rose for the first time in nine weeks, adding to concerns that rising US oil output would undermine Opec and its allies’ efforts to curb supply. On the New York Mercantile Exchange crude futures for June delivery fell 5.1% to settle at $45.72 a barrel, while on London’s Intercontinental Exchange, Brent fell 3.75% to trade at $48.24 a barrel. A weekly report from the Energy Information Administration on Wednesday showed U.S. crude, gasoline and distillates stocks swelled in the week ended May 26. Inventories of U.S. crude rose by roughly 3.3 m barrels in the week ended May 26, confounding expectations of draw of around 3.5 m barrels. Gasoline inventories, one of the products that crude is refined into, rose by 3.324 m barrels against expectations for a rise of only 580,000 barrels while distillate stockpiles unexpectedly rose by 4.4 m barrels, compared to expectations of a 280,000 rise. The faster than expected increase in gasoline inventories surprised investors, as the summer months are traditionally associated with the start of the U.S. summer driving season, which usually spurs heavier refining activity.
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