Having fallen over -20% from April’s peak, oil price has uncomfortably entered a bear market. Intensification of US- China trade war, slowdown in economic growth in major economies, Brexit uncertainty and other geopolitical factors have heightened concerns about the global oil demand. Stock- builds in the US only adds to the weakness in oil price. The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks jumped sharply, by +22.44 mmb to 1307.93 mmb in the week ended May 31. Crude oil inventory jumped +6.78 mmb to 483.26 mmb (consensus: -0.85 mmb). Inventories rose in 4 out of 5 PADDs. Stockpile in PADD3 (Gulf Coast) alone gained +3.47 mmb during the week. Utilization rate climbed +0.6% to 91.8% while crude production added +0.1M bpd to 12.4M bpd for the week. Crude oil imports added +1.07M bpd to 7.93M bpd in the week.