Oil prices sank Wednesday after an unexpected rise in US commercial crude stockpiles reinforced worries about the prolonged global oversupply.
US benchmark West Texas Intermediate (WTI) for February delivery tumbled US$1.27, or 3.4%, to US$36.60 ($51.60) a barrel on the New York Mercantile Exchange, erasing the prior day's brief rebound.
Brent North Sea crude for delivery in February, the international benchmark, fell US$1.33 (3.5%) to US$36.46 a barrel in London, not far from its 11-year low of US$36.11 on Dec 22.
The US Department of Energy's weekly report showed Wednesday that the nation's commercial crude stockpiles had resumed their upward trend following a one-week decline.
Stockpiles rose by 2.6 million barrels to 487.4 million barrels in the week ending Dec 25, instead of the 2.5-million-barrel fall expected by analysts surveyed by Bloomberg News.
Inventories remained near record levels and were up 26.5% from a year ago.
Stockpiles of gasoline and distillates such as heating fuel and diesel rose more than expected. And a build of supplies at the Cushing, Oklahoma hub, the delivery point for Nymex WTI futures, also dented market sentiment.
The data, combined with slightly rising US crude production, "is yet another reminder that the supply glut could take a long time to clear which may mean even lower oil prices in the near term," said Fawad Razaqzada at Forex.com.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
US benchmark West Texas Intermediate (WTI) for February delivery tumbled US$1.27, or 3.4%, to US$36.60 ($51.60) a barrel on the New York Mercantile Exchange, erasing the prior day's brief rebound.
Brent North Sea crude for delivery in February, the international benchmark, fell US$1.33 (3.5%) to US$36.46 a barrel in London, not far from its 11-year low of US$36.11 on Dec 22.
The US Department of Energy's weekly report showed Wednesday that the nation's commercial crude stockpiles had resumed their upward trend following a one-week decline.
Stockpiles rose by 2.6 million barrels to 487.4 million barrels in the week ending Dec 25, instead of the 2.5-million-barrel fall expected by analysts surveyed by Bloomberg News.
Inventories remained near record levels and were up 26.5% from a year ago.
Stockpiles of gasoline and distillates such as heating fuel and diesel rose more than expected. And a build of supplies at the Cushing, Oklahoma hub, the delivery point for Nymex WTI futures, also dented market sentiment.
The data, combined with slightly rising US crude production, "is yet another reminder that the supply glut could take a long time to clear which may mean even lower oil prices in the near term," said Fawad Razaqzada at Forex.com.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
0 comments:
Post a Comment