This goes against market expectations for a decrease in inventories.
Winter Heating Oil Demand Sparks Refiner Buildup
The EIA cited that refiners built up product supply, particularly of heating oil, for the winter as the reason for the unexpected inventory increase.
Analysts Surprised by Inventory Build
Analysts surveyed by Investing.com had forecasted a crude draw of 2.243 million barrels, rather than the 18.962 million barrel build reported by the EIA.
API Report Shows Similar Inventory Growth
The crude build reported by the EIA was even larger than the American Petroleum Institute (API) suggested in its weekly inventory report, which showed a growth of 14.865 million barrels for the week ended Jan. 6.
Gasoline and Distillate Stockpiles Also See Changes
Additionally, the EIA reported a rise of 4.114 million barrels in gasoline inventory, contrasting the forecasted build of 1.186 million barrels and the previous week's decline of 346,000. Distillate stockpiles saw a drop of 1.069 million barrels, different from the forecasted decline of 472,000 barrels and the previous week's slide of 1.427 million.