By Yasin Ebrahim
Investing.com – U.S. crude stockpiles rose substantially last week, according to industry data that exacerbated Tuesday’s losses in oil prices amid easing optimism over energy market recovery from the Covid-19 pandemic.
jumped by 3.91 million barrels for the week ended March 26, according to an estimate released Tuesday by the American Petroleum Institute. That compared with a build of 2.9 million barrels reported by the API for the previous week.
, the benchmark for U.S. crude prices, was down as much as $1.17 a barrel on the news, after settling down $1.01 at $60.55 a barrel.
The backdrop of lower prices comes amid a weaker outlook on demand recovery from OPEC . “While last month saw many positive developments, it also witnessed reminders of the ongoing uncertainties and fragility caused by the COVID-19 pandemic,” OPEC Secretary Mohammed Barkindo told the OPEC+ Joint Technical Committee on Tuesday, according to a statement.
The official government inventory report due Wednesday is expected to show weekly U.S. rose by about 107,000 barrels last week.
The API also showed that gasoline inventories declined by about 6.0 million last week, compared with a 3.7 million draw in the prior week, and distillate stocks rising by about 2.6 million barrels.
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