Wednesday, 21 October 2015

Oil prices down after report shows surge in US crude stocks

Oil prices fell on Wednesday after data from an industry group showed a larger-than-expected build in US crude inventories last week, fanning worries over global oversupply, even as a slightly weaker dollar provided some support. 
Brent crude for December delivery had fallen 9 cents to USD 48.62 a barrel by 0313 GMT after settling up 10 cents in the previous session. 
US crude for December delivery dropped 24 cents at USD 46.05 a barrel after settling up one cent at USD 46.29. 
The November contract, which expired on Tuesday, finished down 34 cents at USD 45.55 per barrel. "Concerns over the potential for a further build (in US crude stocks) in official data (were driving prices lower)", said Michael McCarthy, chief market strategist at Sydney's CMC Markets.
 "The low volumes and market moves are reflecting that," he said. Industry data showed US commercial crude stocks climbed by a larger-than-expected 7.1 million barrels to 473 million barrels in the week to Oct. 16, the American Petroleum Institute said on Tuesday. 
Analysts had expected a 3.9 million barrels increase. The US Energy Information Administration is due to release official inventory data later on Wednesday, which is expected to show a build in crude stocks for a fourth straight week.
 It was a surprise crude stocks had continued to climb even as the number of rigs had fallen, from about 800 six months ago to 600 now, McCarthy said.

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