The nation’s crude stockpiles jumped again — this time by 9.5 million barrels — as the U.S.’s glut of oil supplies continues to grow.
The nearly 1 percent jump in oil inventories follows an even bigger surge of 13.8 million barrels from the week prior, according to the Energy Department.
After falling for much of last year during the two-year industry bust, U.S. oil production is again on the rise, driven largely by the surge in West Texas’ Permian Basin.
The jump in oil stockpiles coincides with the nation’s gasoline inventories also growing by 2.8 million barrels.
Energy investment banking firm Tudor, Pickering, Holt & Co. sees the recent surge as coinciding with the global oil glut at the end of last year. Saudi Arabia and some other nations in the Organization of the Petroleum Exporting Countries increased production in late 2016 before their Jan. 1 agreement began to scale back oil production levels. As such, inventory levels should start falling in March as the impacts of the OPEC reductions are felt.