Why do US crude inventoreis rise, when oil prices soar?
Defying logic, the US crude inventories rose for the third successive week, according to the data released by the EIA, US Energy Information Administration and the API, American Petroleum Institute. The API said on Tuesday that the US crude inventories rose by staggering 5.21 million barrels; the EIA put its figure at 5.3 million barrels, a day later on Wednesday. The inventory build-up, by a significant margin, left analysts scratching their heads searching for answers, as the expectations were quite the opposite. In fact, API’s own estimate for the week ending October 10 was 0.14 million barrels. The news indicating surprise increase in the US crude inventories comes at a time when the traffic is on the roads and aeroplanes are in the air, as if things were as if the world was in the pre-pandemic times. Since it happened at a time when the demand for commodity got a massive boost due to the global crunch in the gas markets, the development adds yet another piece to the crud