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

Investing.com - West Texas Intermediate oil futures remained in negative territory on Thursday, 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 tumbled $1.43, or 2.71%, to trade at $51.39 a barrel during U.S. morning hours. Prices were at around $50.42 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 7.7 million barrels in the week ended February 13, compared to expectations for an increase of 3.3 million barrels.

Total U.S. crude oil inventories stood at 425.6 million barrels as of last week, the most on records dating back to August 1982.

The report also showed that total motor gasoline inventories increased by 0.5 million barrels, compared to expectations for a gain of 0.2 million, while distillate stockpiles decreased by 3.8 million barrels.

The data came out one day later than usual due to Monday's Presidents Day holiday in the U.S.

A day earlier, New York-traded oil futures lost $1.47, or 2.71%, to settle at $52.82 as investors cashed out of the market to lock in gains from a recent rally.

New York-traded oil futures are up almost 16% over the past three weeks amid indications U.S. producers are pulling back on new production in response to low prices.

However, prices are still down approximately 50% from a recent peak of $107.50 hit in June.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery dropped $1.43, or 2.4%, to trade at $59.08 a barrel.

The April Brent contract tumbled $2.00, or 3.2%, on Wednesday to end at $60.53 a barrel.

London-traded Brent prices have sky-rocketed nearly 22% over the past three weeks, as some investors bet that a bottom had been reached after a seven-month long rout.

Brent prices are still down approximately 45% since June, when futures climbed near $116.

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.

Meanwhile, market sentiment remained subdued following reports that Germany rejected a proposed bailout extension request from Greece, as Athens faces running out of money by the end of the month.

The Greek government submitted a request for an extension of its existing loan agreement with the euro zone, which it differentiates from its bailout, earlier Thursday.

But German Finance Minister Wolfgang Schaeuble said it was "not a substantial proposal for a solution" and did not meet the criteria agreed on at the euro group meeting of euro zone finance ministers on Monday.

Greece’s current €240 billion bailout will expire on February 28 and the country will run out of money, which could trigger the country’s exit from the euro zone.