API reports surprise oil inventory increase

SAN FRANCISCO (MarketWatch) -- Washington-based trade group American Petroleum Institute on Tuesday reported a surprise increase in oil and energy products inventories. The API said oil stockpiles increased by 5.86 million barrels on the week ended Aug. 13. Stocks of gasoline rose by 2 million, while stocks of distillates, which include diesel and heating oil, rose by another 2 million. Analysts polled by Platts had expected crude-oil inventories to decline by 2.25 million barrels in the latest week. The analysts also forecast a decline of 1.6 million barrels for gasoline stockpiles and an increase of 1.4 million barrels for inventories of distillates. More closely watched government data is scheduled for Wednesday at 10:30 a.m. Eastern.