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UPDATE 1-Record Cushing crude build curbs U.S. oil futures' gains
February 12, 2015 / 4:47 PM / in 3 years

UPDATE 1-Record Cushing crude build curbs U.S. oil futures' gains

(Adds note on confirmation of build, background, updates prices)

NEW YORK, Feb 12 (Reuters) - Crude oil stockpiles at the Cushing, Oklahoma, delivery point rose by a record 3.2 million barrels since last Friday, according to oil services firm Genscape on Thursday, curbing U.S. crude oil futures’ gains.

Traders said Genscape reported stockpiles grew by a larger-than-expected 3.2 million barrels in the four days between Feb. 6 and Feb. 10 to 47.4 million barrels at the delivery point for U.S. crude futures.

In the 15 minutes after the report was published at 10:00 a.m. EST (1500 GMT), U.S. crude futures lost 1.6 percent, although they remained in positive territory.

By 11:28 a.m., prices were up just over 3 percent at $50.34 per barrel, having recouped some of the ground lost in the immediate aftermath of the Genscape data.

In a note to customers, Genscape said it checked its own data on Wednesday afternoon to confirm it was in fact a record increase.

The note added that Genscape “confirmed the build and showed it continuing at relatively the same rate.”

Oil backed into Cushing has swelled in recent months as traders take advantage of the contango in the market - a structure that allows market participants to buy cheap oil in the front and sell it higher later. January Cushing builds were the highest monthly build on record with the government’s Energy Information Administration. (Reporting By Catherine Ngai; Editing by Chizu Nomiyama and Marguerita Choy)

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