New | US oil glut grows as refinery closures cut demand
Crude demand likely to decline further as more plants begin seasonal maintenance
Oil supplies in the United States surged the most last week since 2001, the latest data shows, as refineries shut units, reducing demand, while production hovers near a three-decade high.
Stockpiles jumped by 10.1 million barrels in the week to January 16, the Energy Information Administration reported.
Refineries used the least crude since April 2013 as plants including Exxon Mobil Corp's Baytown, Texas, and BP's Whiting, Indiana, suffered unplanned shutdowns.
Inventories were poised to expand even more as other plants began seasonal maintenance later this quarter, said Andy Lipow, the president of Lipow Oil Associates, an energy consulting firm in Texas.
Oil has plunged more than 50 per cent since June as slower demand growth and surging production deepened a global glut. Domestic crude production stayed near the highest level since at least 1983.
"As we head into February and March, refinery maintenance will pick up" and oil supplies would continue to rise over the next few months, Lipow said.