US crude supply is still soaring.
A report from the Energy Information Administration on Wednesday said that US Crude inventories rose by 4.9 million barrels last week. This was more than the 3.6 million barrel increase that was expected.
“At 417.9 million barrels, U.S. crude oil inventories are at the highest level for this time of year in at least the last 80 years,” the EIA wrote in its release.
Following the data, West Texas Intermediate crude headed further below $US50 a barrel, falling as much as 3.5% to as low as $US48.24 a barrel. Brent crude was also down 3.5% to $US55.43.
This chart, via Deutsche Bank’s Torsten Sløk, illustrates just how oversupplied oil markets are compared to historical levels.