📈 Fed's first cut since 2020: Time to buy the dip? See Tech-focused stock picksUnlock AI Picks

Crude oil futures sharply lower after U.S. EIA inventory data

Published 05/11/2011, 10:39 AM
LCO
-
CL
-
NG
-
NYF
-
Futures Pros – Crude oil futures extended losses on Wednesday, dropping to a fresh daily low after a government report showed that U.S. crude oil inventories rose significantly more-than-expected last week.

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD100.92 a barrel during U.S. morning trade, tumbling 2.61%.

It earlier fell as much as 2.75% to a daily low of USD100.83 a barrel. The crude contract traded at USD101.69 before the release of the data.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose significantly more-than-expected in the week ended May 6, increasing by 3.8 million barrels, after jumping by 3.4 million barrels in the preceding week.

Analysts had expected U.S. crude oil inventories to rise by 1.1 million barrels.

Total U.S. crude oil inventories for the week ended May 6 stood at 370.3 million barrels, remaining above the upper limit of the average range for this time of year.

Total motor gasoline inventories increased by 1.3 million barrels, confounding expectations for a decline of 0.75 million barrels, while stocks of distillate fuels including heating oil and diesel dropped by 0.8 million barrels. 

U.S. crude oil imports averaged just under 9.0 million barrels per day last week, up by 87,000 barrels per day from the previous week. Over the last four weeks, crude oil imports have averaged nearly 8.8 million barrels per day, 943,000 barrels per day below the same four-week period last year.

The U.S. is the world’s largest consumer of crude oil.

Crude’s earlier losses came amid speculation of further monetary tightening by China and concerns over a slowdown in demand from the U.S.

Meanwhile, on the ICE Futures Exchange, Brent oil for June delivery slumped 2.43% to trade at USD114.24 a barrel, up USD13.40 on its U.S. counterpart.

Elsewhere, natural gas for June delivery dropped 1.9% to trade at USD4.185 per million British thermal units, while heating oil for June delivery fell 1.64% to trade at USD2.957 per gallon during U.S. morning trade.

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.