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WTI oil remains in negative territory after bearish U.S. supply data

Published 02/25/2015, 10:34 AM
© Reuters. U.S. oil futures maintain losses after weekly supply data
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Investing.com - West Texas Intermediate oil futures remained in negative territory on Wednesday, after data showed that oil supplies in the U.S. rose to the highest level on record, exacerbating fears over a glut in supplies.

On the New York Mercantile Exchange, crude oil for delivery in April slumped 20 cents, or 0.41%, to trade at $49.08 a barrel during U.S. morning hours. Prices were at around $48.95 a barrel prior to the release of the inventory data.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 8.4 million barrels in the week ended February 20, compared to expectations for an increase of 4.0 million barrels.

Total U.S. crude oil inventories stood at 434.1 million barrels as of last week, the most on records dating back to August 1982.

The report also showed that total motor gasoline inventories decreased by 3.1 million barrels, compared to expectations for a drop of 1.5 million, while distillate stockpiles declined by 2.7 million barrels.

A day earlier, New York-traded oil futures lost 17 cents, or 0.34%, to settle at $49.28 as lingering concerns over a supply glut in the U.S. drove down prices.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery inched up 43 cents, or 0.74%, to trade at $59.10 a barrel as concerns over a disruption to supplies from Libya boosted prices.

The April Brent contract slipped 24 cents, or 0.41%, on Tuesday to end at $58.66 a barrel.

The spread between the Brent and the WTI crude contracts stood at $10.02 a barrel, compared to $9.38 by close of trade on Tuesday.

Oil prices have fallen sharply in recent months as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

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