Gasoline Glut Could Ruin The Oil Price Party

By Tyler Durden

Submitted by Nick Cunningham via OilPrice.com,

Oil and refined products inventories in the U.S. continue to climb at a worrying pace, raising some red flags for an oil market that was supposed to be on the mend.

Crude oil inventories jumped by a whopping 6.5 million barrels last week, rising to 494.8 million barrels. Oil stocks have now increased every week of 2017, and are now not far off from the 80-year highs reached in 2016.

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It isn’t just crude oil stocks, but gasoline inventories are also rising sharply. Last week gasoline stocks surged by 3.2 million barrels to 257.1 million barrels.

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The sudden and sharp increase in both crude oil and refined product stocks is a warning sign for oil traders that have by and large been betting on a tightening market and rising prices. In fact, the gasoline glut has become so acute on the U.S. eastern seaboard that some tankers destined for American ports have been rerouted to Europe, according to Bloomberg. The surge in inventories “will keep demand for voyages into the East Coast low as the market awaits the impact of spring maintenance,” George Los, senior tanker markets analyst at Charles R. Weber …read more

Source:: ZeroHedge