USA crude oil stockpiles rose unexpectedly last week as imports jumped, exports tumbled and production inched up to its highest since at least 1983, the Energy Information Administration said on Wednesday.
Crude inventories rose 2.2 million barrels in the week to November 3, contrary to analysts' expectations for a decrease of 2.9 million barrels.
Oil prices dropped immediately following the release of the EIA report. Distillate inventories were also trimmed by about 3.4m barrels, well in excess of expectations for a 1.4m barrel draw.
Brent futures LCOc1 fell 20 cents, or 0.3 percent, to settle at $63.49 a barrel, while U.S. West Texas Intermediate crude CLc1 fell 39 cents, or 0.7 percent, to settle at $56.81 per barrel. Analysts forecast that stockpiles of gasoline likely fell 1.9 million barrels last week.
Crude oil stocks rose by 2,237 MBBL last week to 457,143 MBBL, from 454,906 MBBL.
Gasoline stockpiles fell 3.3 million barrels to 209.5 million barrels, while analysts in the survey were expecting levels to fall by 1.8 million barrels from the previous week.
Overall petroleum stocks fell by 9.1 million barrels led by a 3.3 million barrel dip in gasoline inventories and a 3.4 million barrel decline in distillate fuel oil used to make diesel and heating oils. Refinery utilization was projected to rise 0.2 percent from 88.1 percent of total capacity in the week ended October 27, according to the poll.