America’s oil in storage just hit another record after rising for the 11th consecutive week. Stockpiles rose 8.2 million barrels, or 1.8 percent, to 466.7 million barrels last week, the EIA reported today. Analysts had expected an increase of 4.75 million barrels. The amount of oil the U.S. is cranking out also edged up slightly, for the seventh consecutive week, to a rate of 9.42 million barrels a day.
Investors have been closely watching the oil gather in storage tanks, which has been rising steadily since the oil-price crash started last year. Stockpiles are more than 25 percent above their five-year average. Inventories aren’t likely to max out, but even the possibility of coming close is adding pressure to an oversupplied oil market.
The oil storage in tank farms may rise to about 73 percent, leaving plenty of excess room, according to an analysis distributed today by Morgan Stanley. The buildup of stocks will continue to weigh on investor sentiment, but there should be plenty of room left to prevent a “disaster scenario,” according to the report.
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