American Petroleum Institute (API) reported the biggest rise in crude oil inventory in 5 months this week -- of 5.607 million barrels -- while analysts foresaw a decline of 1.433 million barrels.
According to API data, this is the first build of over 5 million barrels since mid-February, reported Oil Price.
During the week ending June 17, the Department of Energy released 6.8 million barrels from strategic petroleum reserves, the report added.
Inventories have fallen by 68 million barrels since the start of 2021 and by about 11 million barrels since the start of 2020, according to API figures, as per the report.
Arvind Sanger of Geosphere Cap Management said, "Sure of an economic slowdown, unsure of the extent of recession. Resumption of economic activity in China may push up crude oil prices in 2023."
"It's too early for the central bank to avoid hiking interest rates. Weakness in crude oil prices is temporary. Resumption of economic activity in China may push up crude oil price in 2023," he added.
In the week prior, API reported a build in crude oil inventories of 736,000 barrels after analysts had predicted a draw of 1.2 million barrels.
Minutes before Wednesday's report, WTI crude was trading down 3.88% at $105.30 per barrel. The price of Brent crude was down 3.38% at $110.80.
US crude oil production increased to 12 million barrels per day in the week ending June 10 - the first increase in four weeks and a decrease of 1.1 million barrels per day from pre-pandemic levels.
For the week ending June 17, API reported a build in gasoline inventories of 1.216 million barrels, compared to the previous week's draw of 2.159 million barrels, as per Oil Price.