U.S. fuel inventories rose sharply last week even as crude supplies declined, according to the Energy Information Administration’s report for the week ended 11 July. Gasoline stocks increased by 3.4 million barrels and distillate inventories swelled by 4.17 million barrels, together lifting total commercial petroleum inventories by roughly 9 million barrels. By contrast, crude oil inventories fell 3.9 million barrels, while storage at Cushing, Oklahoma, edged up 0.2 million. The surprise build in refined-product stocks hit energy markets. August West Texas Intermediate crude settled at $66.38 a barrel, down 14 cents, or 0.21%, after earlier intraday losses. Front-month gasoline futures finished at $2.1440 a gallon and diesel at $2.3915, extending declines that began immediately after the data were released. The product builds ran counter to industry figures a day earlier that had pointed to a sizable crude increase and product draws. EIA data showed signs of softer demand and robust refinery activity. Implied product demand fell 1.68 million barrels a day from the prior week to 19.18 million b/d in the period following the Independence Day holiday, while refineries operated at 93.9% of capacity. Imports from Canada, Saudi Arabia and Nigeria rose, partly offsetting lower arrivals from Canada and Venezuela. Traders said the combination of weaker consumption and ample refinery output fueled concerns about near-term oversupply of gasoline and diesel.