INSTANT VIEW: U.S. crude stocks surge, gasoline drops

NEW YORK (Reuters) - U.S. crude oil stockpiles rose far more than expected last week while gasoline inventories dipped more than expected, according to the U.S. Energy Information Administration.

U.S. crude futures trimmed earlier gains after the report.

ANALYST COMMENTS:

MARK WAGGONER, PRESIDENT, EXCEL FUTURES, HUNTINGTON BEACH,

CALIFORNIA:

"We have a big build on crude stocks and my educated guess is that there were ships that did not offload when Tropical Storm Edouard came and then unloaded last week with better weather. On gasoline, the bigger than expected drop here is not much different from the previous week's data. So, we've got a lot of crude but a lot less gasoline. At this point, crude prices may go back to unchanged, but at the end of the day, I expect prices to close higher."

AMANDA KURZENDOERFER, COMMODITIES ANALYST, SUMMIT ENERGY,

LOUISVILLE, KENTUCKY:

"These are amazing numbers. EIA data shows a very large increase in crude stocks...many had not expected that there could have been so much shipment delay caused by Tropical Storm Edouard. The market is currently product driven, with the larger than forecast drawdown in gasoline supporting prices. Demand did not move much last week, being down slightly and we have to look at further evidence of weakening demand in the U.S. and that could mean continuing the bearish trend. Also important at this point is demand elsewhere. If demand abroad tanks, that will further add to the bearishness of the market.

STEPHEN SCHORK, EDITOR, THE SCHORK REPORT, PHILADELPHIA,

PENNSYLVANIA:

"This is more of the same. A huge build in crude and a huge drawdown in gasoline. Refiners are pulling back output and would rather cannibalize existing supplies and sell into the market. The margins aren't there. When push comes to shove and they have to ramp up production, there will be plenty of crude in the market." PHIL FLYNN ANALYST AT ALARON TRADING in CHICAGO

"This is still feeling the effects of Tropical Storm Edouard. Crude oil imports were up nearly 500,000 barrels per day (according to the API figures). This was just a backlog of crude imports that had been waiting to come to port. Gasoline supplies fell because refiners didn't have time to turn that crude into products and because gasoline demand is still very poor. There's not a lot of incentive for refiners to make product."

JIM RITTERBUSCH, PRESIDENT, RITTERBUSCH & ASSOCIATES, GALENA,

ILLINOIS:

"The data will present a battle today between a very bearish crude figure and a bullish gasoline number and so far, the huge crude build appears to be winning. Cushing supplies, distillate stocks and refinery runs were all close to street ideas. The main impact of the report will likely be seen in the gasoline cracks that could stretch another $1 to $2 per barrel off of these stats.

ROB KURZATKOWSKI, FUTURES ANALYST, OPTIONSXPRESS, CHICAGO:

"It is very difficult to make sense of these numbers. It looks like refiners just simply are not refining which is leading to this huge draw down in gasoline stocks"

"The fact that demand is so weak remains somewhat bearish for the market. Refineries just don't have any incentive whatsoever to ramp up production which is troubling because it could lead to crude stocks continuing to build which could prompt OPEC to cut production."

"Oil traders are probably viewing this as a bullish report. Heating oil stocks are building but not at the pace we'd like to see."