The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories jumped by 15.022 million barrels in the week ended April 17. Economists had forecast a surge of 16.133 million barrels.

At the same time, gasoline stocks rose by 1.017 million barrels, while analysts had expected a gain of 3.578 million barrels. Distillate stocks surged by 7.876 million barrels, while analysts had forecast an increase of 2.750 million barrels.

Meanwhile, oil production in the U.S. decreased by 100,000 barrels a day to 12.200 million barrels a day.

U.S. crude oil imports averaged 4.9 million barrels per day last week, decreased by 0.7 million barrels per day from the previous week.

FXStreet reports that analysts at JP Morgan Asset Management note that falling demand, sticky supply and limited storage have forced oil producers into a precarious situation.

“Spot oil prices and near-term contracts have turned negative because oil holders are willing to pay investors to take the commodity off their hands to avoid those expenses.”

“The oil futures curve is currently in ‘super contango’ whereby the implied oil price of near-term contract may be very low but the market is implying a price for WTI of $35 a barrel one year from now.”

“It seems safe to say that the pressure of negative oil prices will not be in place forever.”

• Says OPEC+ may want to consider further output cuts
• It may be advisable for OPEC+ to cut as soon as possible