Crude drops in wake of bearish U.S. supply report
Published Nov 27, 2013 12:18PM ET
On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD92.18 a barrel during U.S. trading, down 1.60%.
The commodity hit a session low of USD92.05 and a high of USD93.82. The January contract settled down 0.44% at USD93.68 a barrel on Tuesday.
Oil futures were likely to find support at USD91.29 a barrel, the low from June 2, and resistance at USD94.68 a barrel, Tuesday's high.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 3 million barrels in the week ended Nov. 22, well above expectations for an increase of 600,000 barrels.
Total U.S. crude oil inventories stood at 391.4 million barrels, the highest since June.
The report also showed that total motor gasoline inventories increased by 1.8 million barrels, compared to expectations for a gain of 260,000 barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 6.9 million barrels last week, while gasoline stockpiles increased 200,000 barrels.
U.S. crude prices have been on a downward trend in recent weeks amid concerns over rising U.S. inventories and increased production levels.
Meanwhile on the ICE Futures Exchange, Brent oil futures for January delivery were down 0.15% at USD110.72 a barrel, up USD18.54 from its U.S. counterpart.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.