US Department of Energy reported on Wednesday that US crude oil stocks had risen sharply by more than 10 million barrels to a new record level of 518 million barrels last week. Oil prices rose to eight-week highs nevertheless. Brent hit $37.4 per barrel for a time and WTI a good $35 per barrel.

Markets had probably priced in the inventory rise. Data no longer came as a surprise because the API had announced an inventory build of a similar scale the day before. Report showed that US crude oil production declined by a further 25,000 barrels per day, making for the sixth consecutive weekly fall. Production is now 550,000 barrels per day below last spring's high, and at its lowest level since November 2014.

The fact that the market is taking such longer-term aspects into consideration rather than looking solely at near-term inventory trends suggests that sentiment is shifting. Just a few weeks ago, the figures published yesterday would have put severe pressure on oil prices.