Oil prices fall on bloated U.S. fuel inventories, stalling China demand
Buz Investors Oil prices fall The commodity is trading at $51.63 per barrel at 10:40 GMT this morning, 0.14% lower from the New York close. Crude oil witnessed a high of $51.83 per barrel and a low of $51.22 per barrel during the session. In the New York session yesterday, crude oil fell 1.84% to close at $51.70 per barrel, after the API disclosed that US crude stockpiles rose by 14.2 million barrels to 503.6 million barrels last week, recording its second biggest rise ever. Immediate downside, the first support level is seen at $50.92 per barrel, while on the upside, the first resistance level is at $52.63 per barrel.
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Oil prices fall
Oil prices slid on Wednesday to extend falls from the previous session, as a big increase in U.S. crude inventories and a slump in Chinese demand implied that global oil markets remain oversupplied despite OPEC-led efforts to cut output.
International Brent crude futures LCOc1 were trading at $54.81 per barrel at 1257 GMT, down 24 cents from their previous close.
U.S. West Texas Intermediate (WTI) crude CLc1 was at $51.77 a barrel, down 40 cents.
The declines came on the back of unexpectedly big increases in U.S. fuel inventories, as reported by the American Petroleum Institute (API) on Tuesday. [API/S]
Crude inventories rose by 14.2 million barrels in the week to February 3 to 503.6 million barrels, compared with analysts’ expectations in a Reuters poll for a 2.5 million barrel increase.
“If the official data from the U.S. Department of Energy were to show a similar inventory build … U.S. crude oil stocks would be catapulted to almost a record level,” Commerzbank said in a note.
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