Advertisement

UPDATE 2-Oil prices fall on surprise U.S. inventory rise; China crude volatile

From Reuters - March 27, 2018

SINGAPORE (Reuters) - Oil prices fell on Wednesday, with Brent dropping back below $70 per barrel and U.S. West Texas Intermediate crudes dipping below $65, pulled down by a report of increasing U.S. crude inventories that surprised many traders.

U.S. WTI crude futures CLc1 were at $64.73 a barrel by 0611 GMT, down 52 cents, or 0.8 percent, from their previous settlement.

Brent crude futures LCOc1 were at $69.66 per barrel, down 45 cents, or 0.6 percent.

Traders said the falls came after the American Petroleum Institute (API) late on Tuesday reported a surprise 5.3 million barrels rise in crude sticks in the week to March 23, to 430.6 million barrels.

Official U.S. inventory data will be published by the Energy Information Administration (EIA) late on Wednesday.

Well see how the inventory data looks... For the moment it is looking like both WTI and Brent are stalling, said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Robert Carnell, chief economist and head of research at Dutch bank ING in Asia told the Reuters Global Markets Forum on Wednesday that more supply coming from the U.S. would also likely weigh on oil prices.

U.S. oil production has already jumped by almost a quarter since mid-2016, to 10.4 million barrels per day (bpd) C-OUT-T-EIA, taking it past top exporter Saudi Arabia and within reach of the biggest producer, Russia, which pumps around 11 million bpd.

VOLATILE SHANGHAI CRUDE

Advertisement

Continue reading at Reuters »