Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Oil Price Fall on U.S. Crude Inventory Build

Published 23/05/2019, 03:24 pm
© Reuters.
LCO
-
CL
-

Investing.com - Oil prices fell on Thursday in Asia as reports showed a surprise build in U.S. crude inventory last week.

U.S. Crude Oil WTI Futures were down 0.6% to $61.03 by 1:18 AM ET (05:18 GMT). International Brent Oil Futures dropped 0.7% to $70.48.

Crude prices fell as much as 3% on Wednesday after data from the U.S. Energy Information Administration (EIA) reported that crude inventories rose by 4.7 million barrels last week, versus expectations for a decline of nearly 600,000 barrels.

Just a week ago, crude inventories had risen by 5.4 million barrels.

Gasoline and distillate inventories also rose last week, the EIA data showed, suggesting that demand from consumers was also weak.

"Rising inventories and a slowdown with refined product demand could suggest we could see further pressure (on prices)," said Edward Moya, senior analyst at futures brokerage OANDA, in a Reuters report.

Analysts said losses in oil prices were limited by ongoing tension between the U.S. and Iran, as well as supply cuts led by the Organization of the Petroleum Exporting Countries since the beginning of the year.

Development related to the Sino-U.S. trade dispute are also closely monitored. Hopes of a trade deal between the U.S. and China happening in the near future diminished after U.S. Treasury Secretary Steven Mnuchin told CNBC in an interview that a trip to Beijing to resume trade negotiations has not been scheduled yet.

Meanwhile, the South China Morning Post reported that recent restrictions imposed on Huawei have led China to rethink its economic relationship with the U.S.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.