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Oil holds decline as industry data show US stockpiles expand

Feb 14 2018 09:16
Stephen Stapczynski and Sharon Cho, Bloomberg

Tokyo - Oil held declines below $60 a barrel as industry data showed that US crude and gasoline inventories expanded, undermining an effort by OPEC and its allies to clear a global glut.

Futures in New York fell as much as 0.6% after losing 0.2% on Tuesday. Nationwide crude stockpiles rose by 3.95 million barrels last week, while gasoline supplies expanded by 4.63 million barrels, the American Petroleum Institute was said to report. A Bloomberg survey ahead of government data scheduled to be released on Wednesday shows stored oil supplies probably increased by 3.1 million barrels last week.

Crude inventories in developed nations dwindled by the most in six years in December, even as American shale drillers pumped more oil on to world markets, the International Energy Agency said on Tuesday. The Organisation of Petroleum Exporting Countries posted record compliance with self-imposed production limits last month.

“The supplies in the US are in focus once again and the increase in barrels is really happening,” Will Yun, a commodities analyst at Hyundai Futures, said by phone from Seoul. “Until we see more positive signs that can impact the fundamentals of the market, it may be difficult to even maintain current prices.”

West Texas Intermediate for March delivery declined as much as 36 cents to $58.83 a barrel on the New York Mercantile Exchange, and traded at $59.21 at 9:32 am Singapore time. The contract fell 10c to settle at $59.19 on Tuesday. Total volume traded was about 47% below the 100-day average.

Brent for April settlement rose 8c to trade at $62.80 on the London-based ICE Futures Europe exchange. The global benchmark was at a $3.76 premium to April WTI.

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commodities  |  markets  |  oil
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