Oil prices tumbled on Thursday as US inventories were expected to hit record highs, while a possible rise in Saudi output could stoke oversupply built up in the past few months.
US crude for March delivery dropped over 3 percent to a session low of $50.64 a barrel, down almost $2 from Wednesday’s settlement, after data showed a surprisingly sharp build in US crude inventories. The contract was trading down around $1.50 at $50.64 by 0308 GMT.
International Brent crude futures for April fell back below $60 a barrel, trading at $59.54 a barrel, down 99 cents from its last settlement.
US crude stocks rose by 14.3 million barrels last week, data by industry group the American Petroleum Institute showed after Wednesday’s settlement, compared with analyst expectations of an increase of 3.2 million barrels.
If the build is confirmed by US Energy Information Administration data due at 1600 GMT, it will be the largest weekly growth since EIA data became available in 1982.
Oversupply could still worsen before a more balanced market is established, as the US rig cut will only translate into actual lower American output later this year.
Real Time News & Trading Trends Keep Liking #EpicResearch
Facebook – Twitter – YouTube – Pinterest –Linkedin – Google+
For more information ✆ – 0731-6642300 or Visit http://www.epicresearch.co
No comments:
Post a Comment