EIA disclosed that the US crude stockpiles unexpectedly rose by 2.5 million barrels
- US crude stockpiles unexpectedly rose The commodity is trading at $47.03 per barrel at 09:40 GMT this morning, 0.62% higher from the New York close.
- Crude oil witnessed a high of $47.08 per barrel and a low of $46.64 per barrel during the session. In the New York session yesterday,
- crude oil fell 1.29% to close at $46.74 per barrel, after the EIA disclosed that the US crude stockpiles unexpectedly rose by 2.5 million barrels to 523.6 million barrels during the week ended 19 August 2016. Immediate downside, the first support level is seen at $46.42 per barrel, while on the upside, the first resistance level is at $47.67 per barrel.
Oil prices fall as hopes of production freeze fade
US crude stockpiles unexpectedly rose
Oil prices slipped on Thursday as the market focused on oversupply and fading hopes of a production freeze.
Global crude oil benchmark Brent was down 15 cents at $48.90 a barrel by 1043 GMT, having closed down 1.8 per cent on Wednesday. U.S. light crude oil was down 5 cents at $46.72 a barrel, after dropping 2.8 per cent on Wednesday.
Oil prices rose more than 20 per cent in the first three weeks of August on talk of a potential deal by oil exporters to freeze production levels to try to support prices.
U.S. investment bank Jefferies agreed, telling clients on Thursday that even if a freeze was agreed, “the effects on the physical market would appear to be minimal.”
“We do not expect a production freeze – let alone a production cut – from the OPEC meeting,” it said in a report.
With output near record levels from many of the top producers, and demand shaky, there seems little prospect of an end to the glut which has pulled down crude prices from over $100 a barrel in 2014 to their current sub-$50 levels.Click here for reuse options!
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