NYMEX WTI settles at 18-year low after largest-ever US crude build

Front-month WTI settled at an 18-year low Wednesday after US Energy Information Administration data showed US crude stocks posted their largest-ever weekly build last week.

NYMEX May WTI settled down 24 cents at $19.87/b and ICE June Brent finished $1.91 lower at $27.69/b.

Front-month WTI last settled lower in February 2002.

US commercial crude inventories surged 19.25 million barrels to 503.62 million barrels during the week ended April 10, EIA data showed. The build was the largest ever on record, eclipsing the previous record-build of 15.18 million barrels realized the week prior.

Nationwide crude inventories now stand at 6.2% above the five-year average, EIA said.

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Crude inventories at Cushing, Oklahoma, the delivery point of the NYMEX light crude contract, climbed 5.72 million barrels to 54.97 million barrels, erasing a deficit to the five-year average that had persisted since November.

The build pushed Cushing tanks to nearly nearly 70% of total capacity, while nationwide crude storages are now approximately 57.4% full, according to a Platts analysis.

"The bears are back after both Brent oil and WTI crude fell below key technical levels, the $30 and $20 a barrel level respectively," OANDA senior market analyst Edward Moya said. "The EIA report gave a reminder that stockpiles are still ballooning and that the entire world continues to fill up whatever storage capacity remains."

Crude prices were already under pressure overnight on the heels of an International Energy Agency forecast that demand for oil in April would be at a low last hit in 1995.

The IEA report, published three days after OPEC+ agreed output would be cut by 9.7 million b/d in May and June, said "there is no feasible agreement that could cut supply by enough to offset such near-term demand losses."

The IEA expects global demand in April to be 29 million b/d lower than in April 2019. It forecast May's demand would be 26 million b/d lower year on year, with a gradual recovery the following month leaving June consumption down 15 million b/d year on year.

Refined product inventories also moved sharply higher amid record low demand EIA said.

Nationwide gasoline stocks climbed 4.91 million barrels to a record high 262.22 million barrels, while distillate inventories surged 6.28 million barrels to 129.00 million barrels.

NYMEX May RBOB settled up 4 points at 72.04 cents/gal and May ULSD was down 3.04 cents at 91.38 cents/gal.