Crude oil erased this week’s gains after US inventories unexpectedly rose, ANZ analysts Brian Martin & Daniel Hynes note.

Oil prices go down due to a rise in US oil inventories

“The Energy Information Administration’s weekly inventory report showed stockpiles of crude oil rose 1.36mbbl last week, snapping a six-week streak of declines.”

“This was against the API’s estimate of a 5.2mbbl decline. Even so, gasoline and distillate inventories fell 2,894kbbl and 1,673kbbl respectively.”

“The drawdown in gasoline stockpiles helped push implied demand back above 9mb/d. Traders are on edge, as geopolitical tensions remain high.”