Crude drops as U.S. stockpile report eclipses OPEC cuts
Published Sep 17, 2014 01:14PM ET
Oil falls as report reveals U.S. may be awash in crude
Investing.com - Oil prices dropped in U.S. trading on Wednesday after a bearish U.S. inventory report offset otherwise bullish news that the OPEC oil cartel is planning to trim output.
In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in November traded down 1.06% at $92.82 a barrel during U.S. trading. New York-traded oil futures hit a session low of $92.77 a barrel and a high of $94.01 a barrel.
The November contract settled up 1.98% at $93.81 a barrel on Tuesday.
Nymex oil futures were likely to find support at $89.76 a barrel, Monday's low, and resistance at $94.12 a barrel, Tuesday's high.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories increased by 3.7 million barrels in the week ended Sept. 12, confounding expectations for a decline of 1.7 million barrels, which sent prices plummeting by stoking fears of a supply glut.
Total U.S. crude oil inventories stood at 362.3 million barrels as of last week.
The report also showed that total motor gasoline inventories decreased by 1.6 million barrels, compared to forecasts for a decline of 0.3 million barrels, while distillate stockpiles rose by 0.3 million barrels.
Oil prices have slumped in recent weeks amid concerns that supply far exceeds demand in the global economy, and Wednesday's data doused hopes that U.S. demand could account for slack elsewhere in the global economy, offsetting bullish pressures elsewhere.
OPEC Secretary General Abdallah El-Badri said Tuesday the oil bloc may trim output to 29.5 million barrels per day from 30 million when the group meets in November to shore up prices.
Separately, on the ICE Futures Exchange in London, Brent oil futures for November delivery were down 0.35% at US$98.71 a barrel, while the spread between Brent and U.S. crude contracts stood at US$5.89 a barrel.
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Written By: Investing.com
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