The Energy Information Administration reported on Wednesday that U.S. crude stockpiles increased last week, as imports rose and exports dropped to their lowest level since January. Meanwhile, gasoline and distillate stocks decreased.

The EIA reported that crude inventories increased by 2.6 millions barrels, to 442.3million barrels for the week ending April 4. This was compared to analysts' expectations in an online poll of a 1.4million-barrel increase.

The data revealed that the net U.S. crude exports dropped by 637,000 barrels per day last week to 3.2 millions bpd while imports increased 360,000 bpd.

John Kilduff of Again Capital, a New York-based partner, said: "Exports have dropped and we'll need to see whether we lose access to China and if our exports will be affected in the future."

As a retaliation to U.S. president Donald Trump

Tarif

China's foreign policy

Has been announced

Tariffs on U.S. products. The finance ministry announced that China would impose tariffs of 84% on U.S. products starting Thursday. This is an increase from the 34% previously announced.

After the EIA release, oil prices pared their losses but were still down more than 5%.

The EIA reported that gasoline stocks dropped by 1.6m barrels last week, to 236m barrels. This was a far cry from the 1.5m barrels expected. ?

The product supplied of gasoline (a proxy for the demand) fell from 8.5 to 8.4 millions bpd during the previous week. Investors are concerned about lower consumption as we enter the summer peak season.

Kilduff stated, "This is not a good number. It could be an indication of what economists are saying about a slowdown and that people may be afraid of tariffs."

The data revealed that distillate stocks, which includes diesel and heating oil fell by 3.5 millions barrels last week, as opposed to expectations of a 266,000-barrel increase.

The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, rose by 681,000 barges.

Refinery crude run rates increased by 69,000 barrels per day and utilization rates by 0.7 percentage points to 86.7%. (Reporting and editing by Margueritachoy; Additional reporting by Georgina Mccartney)

(source: Reuters)