Inventories of crude oil increase by 10M barrels
U.S. crude oil inventories jumped more than 10 million barrels and oil prices rose less than a percent as U.S. production continues to grow.
The Department of Energy said crude oil inventories grew to 442.1 million barrels, about 5 percent higher than the five-year average. Gasoline inventories decreased 1.4 million barrels last week and are about 7 percent higher than the five-year average for this time of year.
Prices for West Texas Intermediate are down nearly $20 a barrels since they peaked at $76.41 a barrel on Oct. 3. Oil closed Thursday at $56.46 a barrel, up 21 cents.
The crude oil inventory build comes as the Energy Department estimates oil production from shale plays will continue to grow in December by 113,000 barrels a day. U.S. oil production is already at record levels of 11.6 million barrels a day.
The Energy Department also reported that at the end of the refilling season in October, natural gas stocks were at their lowest levels in 13 years, with only 3.2 trillion cubic feet of natural gas in storage on Oct. 31. The previous lowest level was just under 3.2 trillion cubic feet on Oct. 31, 2005.
The Energy Department said that low temperatures in April led to increased natural gas use and that replenishing of natural gas stocks was below five-year averages.