INSTANT VIEW 7-US crude, distillate stocks rise

NEW YORK, Oct 17 (Reuters) - U.S. crude stockpiles rose
more than expected last week while distillate stocks showed a
surprise build, according to a government report released
Wednesday.

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HIGHLIGHTS FROM EIA REPORT (In million barrels):

- Crude +1.8 million (forecast +0.9)

- Distillate +1.0 million (forecast -0.4)

- Gasoline +2.8 million (forecast +0.5)

Click here for the EIA status report [ID:nEIA000354]

Click here for the API status report [ID:nAPI000029]

ANALYST REACTION:
ANTOINE HALFF, FIMAT, NEW YORK, NY

"Products stocks numbers are both big and counterseasonal.
Demand growth has been slowing appreciably in data which is
something the monthly numbers have been underestimating. The
slowdown is getting a little bit steeper. At the same time,
with all the refinery problems and outages output remains quite
resilient.
ERIC WITTENAUER ANALYST AT A.G. EDWARDS IN ST. LOUIS

"Across the board bearish. The demand numbers continue to
show weakness, which helped lead to the builds. The crude oil
build came on higher imports, which tend to be volatile. It
will be interesting if any sell-off can be maintained. This
market has had every opportunity to go lower and it hasn't. A
lot of times a break down is viewed as buying opportunity. The
momentum remains up."
PETER BEUTEL, PRESIDENT, CAMERON HANOVER, NEW CANAAN,
CONNECTICUT:

"It's surprising to see builds across the board in the
stocks; the only bullish factor is the decline in refinery
utilization. That's because the stocks of gasoline and crude
oil rose and usually if you see crude oil stocks higher you
will see gasoline and distillates stocks lower.

We got all three major stocks headed in the same direction
so it is difficult to paint a bullish picture unless one
focuses completely on utilization."
JIM RITTERBUSCH, PRESIDENT, RITTERBUSCH & ASSOCIATES, GALENA,
ILLINOIS

"Crude stocks built slightly more than expected, however,
the bulk of that build was on the non-representative West
Coast. Cushing barrels were down about 200,000 barrels, so that
kind of mitigates that build."

"On balance, the product numbers looked negative. These
bearish product figures will tend to keep pressure on these
crack spreads and that's, I guess, what I'd call a latent
bearish consideration. Products simply aren't keeping up with
the crude rally. As the crude rally continues, that process
will become even more ardous."

"These numbers, when you shake them all out, they are
definitely skewed to the bearish side...(but) it's going to
take more than one EIA report to cap this market."
JAY LEVINE, BROKER, ENERJAY, LLC, BROKERAGE AND CONSULTING,
PORTLAND, MAINE:

"Mostly builds is proof, although not conclusive by any
measure, that not all is bullish about the current environment.
It should help to balance a market run amok, possibly adding
one small straw towards tempering further gains if not a
short-term reversal."
TOM BENTZ, BNP PARIBAS COMMODITY FUTURES, NEW YORK, NY

"The statistics are negative for prices. We have seen a
little correction on them. The options expiry wil push us
higher, though, and I think we could take a look at the highs
again."
DANIEL FLYNN, ANALYST, ALARON TRADING, CHICAGO

"The EIA data of a build on crude stocks is bearish, but in
the current atmosphere where geopolitical tensions are at the
forefront, you may see crude take out $88.20."
JOHN KILDUFF, SENIOR VICE PRESIDENT, MF GLOBAL, NEW YORK

"It's somewhat of a bearish report obviously, with inventory
gains across the board that are a bit out-sized. It was also a
very strong crude imports week, but whether this is enough to
change the tide remains to be seen. I would not characterize it
as an overwhelmingly bearish report."