Oil Inventories Unexpectedly Rise by 1.026M Barrels Last Week: API By

© Reuters.

By Yasin Ebrahim – U.S. oil stockpiles unexpectedly rose last week despite a cold snap sweeping across Texas that shut in production across the oil-rich state and left millions without power.  

rose 1.026 million barrels last week, according to an estimate released Tuesday by the American Petroleum Institute, after a fall of 5.8 million barrels the previous week. Still, the unexpected build was hardly surprising according to some market participants in the wake of a refinery capacity that was down.

Cushing inventory slipped by 2.738 million barrels, while gasoline inventories fell by 66,000 barrels, and distillate stocks decreased by 4.49 million barrels.  

, the U.S. benchmark for oil, fell 42 cents a barrel after settling down 3 cents, at $61.67 per barrel.

Oil prices made a strong start to the week on Monday after Goldman Sachs hiked its price target on to $70 in the second quarter and $75 in the third, from prior forecasts of $60 and $65 respectively, citing expectations for tight oil markets this summer.

“We now forecast that oil prices will rally sooner and higher, driven by lower expected inventories and higher marginal costs — at least in the short run — to restart upstream activity,” Goldman said in a note.

The official government report due Thursday is expected to show weekly U.S. declined by about 5.190 million barrels last week. 

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