🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Oil slides to 5-week low as weekly U.S. stockpile data disappoints

Published 05/03/2017, 10:35 AM
© Reuters.  Oil slides to 5-week low after weekly U.S. stockpile data
LCO
-
CL
-
NG
-
NYF
-
GPR
-

Investing.com - Oil prices reversed overnight gains in North American trading on Wednesday, sliding to a fresh five-week low after data showed a lower than expected drawdown in U.S. oil stockpiles.

The U.S. West Texas Intermediate crude June contract shed 17 cents, or around 0.3%, to $47.51 a barrel by 10:35AM ET (14:35GMT) after falling to $47.34, a level not seen since March 27. Prices were at around $47.98 prior to the release of the inventory data.

Elsewhere, Brent oil for July delivery on the ICE Futures Exchange in London dipped 22 cents to $50.23 a barrel, after sliding to $50.14 in the prior session, its deepest trough since March 27.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 930,000 barrels in the week ended April 28.

Market analysts' expected a crude-stock decline of 2.3 million barrels, while the American Petroleum Institute late Tuesday reported a supply-drop of 4.1 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, decreased by 728,000 barrels last week, the EIA said.

Total U.S. crude oil inventories stood at 527.8 million barrels as of last week, which the EIA considered to be at the upper limit of the average range for this time of year.

The report also showed that gasoline inventories increased by 191,000 barrels, compared to expectations for a gain of 1.3 million barrels.

For distillate inventories including diesel, the EIA reported a decline of 562,000 barrels.

Crude has been under pressure in recent weeks amid fears that an ongoing rebound in U.S. shale production is derailing efforts by other major producers to rebalance global oil supply and demand.

U.S. drillers last week added rigs for the 15th week in a row, implying that further gains in domestic production are ahead. The U.S. rig count rose by 9 to 697, extending an 11-month drilling recovery to the highest level since August 2015.

The relentless increase in U.S. output has overshadowed pledged output cuts by major producers.

In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day between January and June, but so far the move has had little impact on inventory levels.

A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.

Elsewhere on Nymex, gasoline futures for June slumped 2.3 cents, or 1.5%, to $1.512 a gallon, while June heating oil slipped 0.6 cents to $1.461 a gallon.

Natural gas futures for June delivery inched up 1.2 cents to $3.207 per million British thermal units.

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.