Jonathan Alcorn | Reuters
Oil jack pumps are pictured in the Kern River oil field in Bakersfield, Calif.
Oil prices were choppy on Wednesday after a government report showed a large rise in U.S. crude inventories, signaling ample supply even as OPEC achieves record compliance with its output-cut accord.
U.S. crude stocks rose 9.5 million barrels last week, the U.S. Energy Information Administration (EIA) said, nearly three times more than forecast, but confirming a trade group’s report late Tuesday of a larger-than-expected build.
U.S. crude inventories hit a peak at 518.12 million barrels, while gasoline stocks also touched a record, rising 2.8 million barrels to 259.1 million barrels, according to the EIA.
A drop in crude oil imports and distillate fuel stocks partially offset the headline figure, said John Kilduff, founding partner at energy hedge fund Again Capital.
“Still, the report was very bearish, with crude oil inventories at a record. OPEC has an ocean to drain here, not merely a swamp,” he told CNBC.
