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Oil Prices Mixed Amid Unexpected Jump in American Crude Inventories

Published 04/25/2019, 01:10 AM
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Investing.com - Oil prices were mixed on Thursday in Asia after a surprisingly big jump in American crude inventories.

U.S. Crude Oil WTI Futures traded 0.1% lower to $65.81 by 1:01 AM ET (05: 01 GMT). International Brent Oil Futures rose 0.1% to $74.61.

Crude stockpiles in the country rose about five times more than expected last week, the U.S. Energy Information Administration reported.

Inventories rose by 5.48 million barrels in the week ended April 19, compared with forecasts for a build of 1.26 million barrels. In the previous week to April 12, crude stockpiles fell by 1.4 million barrels.

Meanwhile, imports grew the most since mid-March amid new momentum in the market's four-month long rally.

Oil prices are on track for possible gains of 3% this week, boosted by reports that the U.S. would scrap all sanction waivers for importers of Iranian oil after May 2, heightening concerns about supply in the market.

On Wednesday, Brian Hook, U.S. Special Representative for Iran and Senior Policy Advisor to the Secretary of State, said the sanctions have slashed Iran’s government more than $10 billion in oil revenue.

"Before sanctions...Iran generated as much as $50 billion annually in oil revenue. We estimate that our sanctions have already denied the regime more than $10 billion since May (2018)," Hook said.

Saudi Arabian Energy Minister Khalid Al-Falih said there is no need for immediate action, while the International Energy Agency said “comfortable” levels of spare capacity remain.

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