Crude oil under pressure courtesy record stockpile

Yesterday's weekly crude oil report from Energy Information Administration (EIA), revealed several key points, which is not bearing well for North American benchmark, West Texas Intermediate (WTI). WTI is down more than 1% today, trading at $30.4/barrel, compared to that global benchmark Brent is down about just -0.2%.

Last night's report from EIA showed,

• Inventory increased by 2.1 million barrels/day, crashing any shrinkage hopes that got built after American Petroleum Institute (API) data showed inventory reduction by 3.3 million barrels/day.

• The report revealed, crude imports playing a crucial rose. Due to lower oil price and discounts from Middle East, Crude imports have risen in last week above average and about 7.95 million barrels/day and also averaged 7.7 million barrels/day in last four weeks, which is 5.8% higher from level a year ago.

• Overall storage increased to 504 million barrels highest in at least 80 years.

• Larger than increase in gasoline inventories also raising fear that demand may not be substantial and refineries are operating at high speed.

Rising inventory remains one of the biggest concern of investors, even as some gulf delegates led by Venezuela trying for a global policy coordination to stem price decline in oil.