👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Oil Turns Lower After Data Shows U.S. Crude Stocks Rise By 6.2M

Published 05/02/2018, 10:35 AM
© Reuters.  Oil trades lower after U.S. supply data
LCO
-
CL
-
NG
-
NYF
-
GPR
-

Investing.com - Crude prices turned lower on Wednesday, after data showed that U.S. oil stockpiles rose much more than expected last week, while domestic production hit another all-time high.

New York-traded WTI crude futures shed 20 cents, or roughly 0.3%, to $67.06 a barrel by 10:35AM ET (1435GMT). Prices were at around $67.31 prior to the release of the inventory data.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 6.2 million barrels in the week ended April 27.

That compared with analysts' expectations for an increase of 789,000 barrels, while the American Petroleum Institute late Tuesday reported a supply-gain of 3.4 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, rose by 416,000 barrels last week, the EIA said.

Total U.S. crude oil inventories stood at 436.0 million barrels as of last week, which the EIA considered to be in the lower half of the average range for this time of year.

Domestic oil production- driven by shale extraction - rose to a fresh all-time high of 10.61 million barrels per day last week. Only Russia currently produces more, at around 11 million bpd.

The report also showed that gasoline inventories increased by 1.2 million barrels, compared to expectations for a decline of 587,000 barrels. For distillate inventories including diesel, the EIA reported a drop of 3.9 million barrels.

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., declined 48 cents, or about 0.7%, to $72.64 a barrel, amid uncertainty about whether the U.S. will pull out of the Iran nuclear deal.

President Donald Trump has until May 12 to decide whether to pull the United States out of a 2015 international accord to curb Iran’s nuclear program and restore sanctions on one of the world's biggest oil producers.

If sanctions are reinstated, that could contribute to tighter global oil inventories, as it would likely result in a reduction of Tehran's oil exports.

Iran is a major Middle East oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC).

In other energy trading, gasoline futures fell around 0.9% to $2.067 a gallon, while heating oil was little changed at $2.101 a gallon.

Natural gas futures were down 1.5% at $2.761 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.