NEW YORK, Sept 23 (Reuters) - U.S. inventories of crude oil, gasoline and distillates rose sharply last week, according to a government report on Wednesday, rekindling worries that energy demand in the world's biggest consumer will be slow to recover in the wake of the recession.
Commercial stockpiles of crude gained 2.8 million barrels to 335.6 million in the week ended Sept. 18 as imports sped up by 891,000 barrels per day and demand from refineries fell by 316,000 bpd, according to the weekly report from the U.S. Energy Information Administration.
Analysts had expected crude stockpiles to fall by 1.5 million barrels, according to a Reuters poll.
"This is clearly a bearish report, particularly in crude, which wrong-footed the market," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. "We are really seeing that despite talk of a nascent economic recovery, the American consumer and industry are not on that page yet."
Crude oil prices CLc1 traded down nearly $3 a barrel after the report was released. [O/N]
Gasoline inventories, meanwhile, rose 5.4 million barrels to 213.1 million, and distillates rose 3.0 million barrels to a fresh 26-year high of 170.8 million barrels.
Analysts had expected gasolines stocks to rise 400,000 barrels and distillates to rise 1.4 million, according to the Reuters poll.
The bigger-than-expected builds in refined products inventories came despite year-on-year growth in implied U.S. product demand over the past four weeks of 4.4 percent.
Analysts said the growth during the period was due primarily to the impact of severe hurricanes along the Gulf Coast last year which hit fuel usage. (Reporting by Richard Valdmanis, Gene Ramos, Matthew Robinson, Robert Gibbons, Edward McAllister, Rebekah Kebede, Janet McGurty, Eileen Moustakis; Editing by Marguerita Choy) Link...