US Oil Falls 2% on Surprise Build in Crude Stocks

تم نشره في Wed 24 August / Aug 2016. 12:00 AM
  • Crude oil storage tanks are seen from above at the Cushing oil hub, appearing to run out of space to contain a historic supply glut that has hammered prices, in Cushing, Oklahoma, March 24, 2016. - (REUTERS)

LONDON/SINGAPORE — US oil prices fell more than 2 per cent on Wednesday on an unexpected increase in US crude stocks that revived worries about the supply glut that has capped prices for the past two years.

Industry data from the American Petroleum Institute (API) showed on Tuesday that US crude inventories had risen by 4.5 million barrels in the week ending Aug. 19, while analysts had expected a 455,000-barrel fall.

This pushed US West Texas Intermediate (WTI) crude CLc1 down more than USD1, erasing gains made in the previous session. WTI crude was down USD1.03, 2.1 per cent, at USD47.07 a barrel around noon Greenwich Meantime.

Global benchmark Brent crude LCOc1 was down USD0.69, 1.4 per cent, to USD49.27 a barrel, after touching an intraday low of USD49.07.

The US government will publish its own weekly crude stocks data at 1430 GMT on Wednesday.

Brent briefly spiked above USD50 in the previous session after Reuters reported Iran was sending positive signals that the country may support joint OPEC action to prop up oil prices.

But analysts and traders remain sceptical that producers will come to an agreement at a meeting in Algeria scheduled for Sept. 26-28 as various OPEC members have their own agendas.

Iraq's prime minister said on Tuesday his country had not yet reached its full oil market share, suggesting the government would not restrain crude output as part of any OPEC agreement.

He said he could see prices drifting closer to USD45 a barrel over the next few days.

China's state-controlled oil firm CNOOC said on Wednesday an oil price recovery was facing "significant headwinds", as it reported swinging to a loss in the first half of the year due to weak prices.