already at the highest level since July 1999 -- rising a further 2.7 million barrels last week to 329.7 million. Refined product stocks also increased, although the 200,000 barrels gain in gasoline stocks to 213.7 millon was less than expected. The IEA said that rising stocks will not necessarily dampen prices, as a lack of spare production and refinery capacity meant that supplies were still under strain. "Total oil stocks seem neither high nor sufficient to offset current capacity constraints and increasing future demand," it said. "The U.S. crude market could tighten rapidly, particularly if currently unfavourable price differentials continue to hamper imports," it said.
